HomeMy WebLinkAbout06-08-2011 Administration Committee Agenda
6/8/11 Administration Committee Agenda Page 1 of 4
Orange County Sanitation District Regular Meeting of the
Administration Committee
Wednesday, June 8, 2011
5:30 P.M.
Administration Building Board Room
10844 Ellis Avenue
Fountain Valley, CA (714) 593-7130
AGENDA
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker’s Form and give it to the
Clerk of the Board. Speakers are requested to limit comments to three minutes.
REPORTS: The Committee Chair and the General Manager may present verbal reports on
miscellaneous matters of general interest to the Committee Members. These reports are for information
only and require no action by the Committee.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
CONSENT CALENDAR:
1. Approve Minutes of the May 11, 2011, Administration Committee meeting.
ACTION ITEMS:
2. A) Recommend to the Board of Directors to approve a Purchase Order
Agreement with CDW-G, the lowest responsive and responsible bidder, for Purchase of Cisco Parts, Specification No. E-2011-481BD, for an amount not
to exceed $225,354; and,
B) Approve a contingency of $22,535 (10%).
3. A) Recommend to the Board of Directors to renew the Sanitation District’s
Excess General Liability Insurance for the period July 1, 2011 through
June 30, 2012, in an amount not to exceed $366,000.
B) Renew the Sanitation District’s Excess Workers’ Compensation Insurance for the period July 1, 2011 through June 30, 2012 at a rate not to exceed .00342
(estimated premium of $213,100 based on estimated 2011-12 payroll).
6/8/11 Administration Committee Agenda Page 2 of 4
C) Renew the Sanitation District’s All-Risk Property and Flood Insurance for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $450,000.
D) Renew the Sanitation District’s Boiler & Machinery Insurance Program for the
period July 1, 2011 through June 30, 2012, in an amount not to exceed $16,500.
4. A) Approve a Purchase Order Agreement for Temporary Employment Services,
Specification No. CS-2009-421BD, with temporary service firms for a total
amount not to exceed $126,000 per year, for a one-year period July 1, 2011 through June 30, 2012, with a one-year renewal option;
B) Approve an annual contingency of $24,000 (19%); and,
C) Authorize the General Manager to add or delete such firms as necessary to meet work requirements as identified by the Human Resources Department.
5. Recommend to the Board of Directors to Adopt Resolution No. OCSD 11-XX,
Establishing Use Charges for the FY 2011-12 Pursuant to the Wastewater
Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority.
6. Recommend to the Board of Directors to approve the proposed revisions to the
Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY
2011-12, as follows:
Originally Proposed Adopted Budget Revised Budget FY 2011-12 FY 2011-12
Operations & Maintenance $156,090,770 $152,545,540 Capital Improvement Program 122,423,000 129,169,900 Debt/COP Service Re-Purchase of Excess Capacity 97,052,940
29,690,000
92,162,910
29,690,000 General Liability and Property Self-Insurance 1,606,200 1,606,200 Worker's Compensation Self Insurance 550,000 550,000 TOTAL $407,412,910 $405,724,550
INFORMATIONAL ITEMS:
N/A
6/8/11 Administration Committee Agenda Page 3 of 4
CLOSED SESSION:
During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or
54957.6, as noted Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employee
actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Committee on any of these subjects, the minutes will
reflect all required disclosures of information.
Convene in closed session.
(1) CONFER WITH DISTRICT NEGOTIATORS
(Government Code Section 54954.5(f))
· Agency Designated Representatives: James D. Ruth, General Manager;
Robert Ghirelli, Assistant General Manager; Jim Herberg, Assistant General
Manager, Jeff Reed, Director of Human Resources; and, Richard Spencer,
Human Resources Supervisor.
· Employee Organizations: International Union of Operating Engineers, Local
501 and Orange County Employees Association (OCEA)
Reconvene in regular session.
Consideration of action, if any, on matters considered in closed session.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY:
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, July 13, 2011, at 5:30 p.m.
6/8/11 Administration Committee Agenda Page 4 of 4
Accommodations for the Disabled: Meeting rooms are wheelchair accessible. If you require any special
disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board’s office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify
the nature of the disability and the type of accommodation requested.
Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building
located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records
distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors are available for public inspection in the office of the Clerk of the Board.
NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be
submitted to the Clerk of the Board 14 days before the meeting.
Maria Ayala, Clerk of the Board (714) 593-7130 mayala@ocsd.com
1DW-102 Board AR, Rev 10/04/ Page 1 of 2
ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir. 06/22/11
AGENDA REPORT Item Number 2 Item Number
Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director, Finance and Administrative Services
SUBJECT: Purchase of Computer Network Parts for J-33-3
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Purchase Order Agreement with CDW-G, the lowest responsive and
responsible bidder, for Purchase of Cisco Parts, Specification No. E-2011-481BD,
for an amount not to exceed $225,354; and, B. Approve a contingency of $22,535 (10%).
SUMMARY This procurement provides Information Technology networking equipment to support
the process control network in the J-33-3 Power Monitoring and Control Systems
project. The J-33-3 project installs electrical power monitoring and control equipment at
Plant 1. The control system will continuously adjust the electrical system to prevent power variations and outages from causing process failures.
PRIOR COMMITTEE/BOARD ACTIONS
04/24/1992: Established Cisco Equipment as the Sanitation District’s standard
networking equipment
ADDITIONAL INFORMATION
This procurement was competitively bid with 16 perspective bidders with four bid
packages being received by the Sanitation District. The companies that bid and the bid
amounts are listed below. Staff recommends CDW-G be awarded the Purchase of Cisco Parts purchase order as the lowest responsible and responsible bidder.
1DW-102 Board AR, Rev 10/04/ Page 2 of 2
Purchase of Cisco Parts Bid Date – 04/20/2011 @ 2:00 P.M.
E-2011-481BD
Bidder Amount of Bid
CDW-G $225,353.28 Aprisa Technology LLC $235,629.04
IMPEX Technologies, Inc. $245,490.17
Network Integration
Company Partners $245,594.89
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
This request complies with authority levels of the Sanitation District’s Delegation of
Authority. This item has been budgeted. (Line item: Section 8, Page 89). Project
contingency funds will not be used for this Purchase Order.
Date of Approval Purchase Order Amount Contingency
06/22/2011 $225,354 $22,535 (10%)
Page 1 of 4
ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir. 06/22/11
AGENDA REPORT Item Number 3 Item Number
Orange County Sanitation District FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance & Administrative Services
SUBJECT: Annual Renewal of the Sanitation District’s Major Operational Insurance
Programs for FY 2011-12
GENERAL MANAGER'S RECOMMENDATION
1) Renew the Sanitation District’s Excess General Liability Insurance for the period
July 1, 2011 through June 30, 2012, in an amount not to exceed $366,000;
2) Renew the Sanitation District’s Excess Workers’ Compensation Insurance for the
period July 1, 2011 through June 30, 2012 at a rate not to exceed .00342 (estimated
premium of $213,100 based on estimated 2011-12 payroll);
3) Renew the Sanitation District’s All-Risk Property and Flood Insurance for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $450,000; and,
4) Renew the Sanitation District’s Boiler & Machinery Insurance Program for the period
July 1, 2011 through June 30, 2012, in an amount not to exceed $16,500.
SUMMARY
The Sanitation District budget provides funds for the renewal of the following four major
insurances for operations:
1) Excess General Liability Insurance
2) Excess Workers’ Compensation
3) All-Risk Property and Flood insurance
4) Boiler & Machinery insurance
As a group the recommended renewals are 7% up from last year, with the possibility of
improvement at final renewal.
The Sanitation District’s broker will be present at the Committee meeting to give us the latest pricing, with the recommendations above based on “not to exceed” numbers
which may be improved upon by the time of the meeting.
Page 2 of 4
PRIOR COMMITTEE/BOARD ACTIONS
June 2010 - The Board approved renewal of the above four policies for the period July 1, 2010 through June 30, 2011.
ADDITIONAL INFORMATION
1) Excess General Liability Insurance Program The Sanitation District’s Excess General Liability Insurance Program is currently
provided through the California Municipal Excess Liability Program (CAMEL) and its
sister program, the Alliant National Municipal Liability Program (ANML). The
Sanitation District has participated in the CAMEL program since FY 1996-97. This program currently provides the Sanitation District with a $30 million policy of
comprehensive coverage for municipal liability, bodily injury and property damage,
and personal injury. The program was structured to also include Employment
Practices, and Public Officials Errors & Omissions coverage. The $30 million coverage is per occurrence, with a self-insured deductible of $250,000 per occurrence and $500,000 deductible for employment practices claims. Since 1997,
the Employment Practices portion of coverage has been enhanced from a $2 million
sub-limit to the full $30 million policy limit.
The actual insurance coverage currently consists of two separate layers. The first layer is the “Basic” $10 million program with self-insured retention of $250,000. The
second layer consists of $20 million of coverage in excess of the first layer of $10
million. The current projected 2011-12 premium is $360,000, an increase of $11,606
(3%) over the 2010-11 premium.
2) Excess Workers’ Compensation Insurance
The Excess Workers’ Compensation insurance coverage is with the California State Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation District has participated in this program or its predecessor since 2003. Excess
Workers’ Compensation Program currently provides so-called “Statutory” (unlimited)
coverage with a self-insured retention (SIR), or deductible, of $500,000.
The use of Excess Workers’ Compensation Insurance dates back to the late 1980’s. At that time, the Fiscal Policy Committee approved a SIR, or deductible, of
$250,000, for such coverage.
Due to the hardening of the workers’ compensation market, this deductible was raised to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance Corporation (ERC) that provided coverage at the time of $25 million
with a self-insured retention (SIR), or deductible of $500,000.
Page 3 of 4
Some additional risk may be associated with the CSAC EIA joint powers authority in that a premium surcharge can be assessed to individual members if an unusually
large number of losses were to occur outside of the actuarial evaluation estimates.
However, historically the CSAC EIA premiums for excess workers compensation
have been so much less than competing quotes available to the Sanitation District that if even there were a surcharge, the cost might still continue to be cheaper.
The renewal of the Excess Workers’ Compensation Insurance for the period
July 1, 2010 through June 30, 2011 was at a rate of .002763 (close to the previous
year’s rate of .002658). The premium rate is based on the estimated total payroll. Since the actual final payroll amount is not known until the end of the year, the Sanitation District will not know the exact final premium until the year is over.
The current projected 2011-12 premium is $213,100, an increase of $38,100 (22%)
over the 2010-11 premium. 3) All-Risk Property and Flood Insurance
All-Risk Property and Flood Insurance Program (Property Insurance) provides for
comprehensive coverage for most of the Sanitation District’s real and personal property regarding virtually all perils including fire, flood, and business interruption.
The Sanitation District previously carried earthquake insurance as part of its
Property Insurance, but in the last few years earthquake insurance has been
impossible to obtain or not cost-effective. Currently, the Sanitation District has earthquake insurance only in connection with some of its buildings under construction.
Current Property Insurance limits are $1 billion for most perils other than flood and
earthquakes, and $300 million for flood, with many sub-limits for various situations. In order to reach $1 billion in limits, the broker had to arrange for nearly a dozen different layers of insurers. The SIR is $250,000 per occurrence for most types of
losses.
Since the late 1990’s, the Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP), one of the world’s largest property programs. It is important to
note that this joint purchase property insurance program offers the purchasing power
of numerous large public entities without the pooling or sharing of coverage or
losses. The renewal of All-Risk Property and Flood Insurance for the period July 1, 2010
through June 30, 2011 was at a premium of $436,740, a decrease of 5.8 percent
from the previous year.
The current projected 2011-12 premium is $450,000, an increase of $13,260 (3%) over the 2010-11 premium.
Page 4 of 4
4) Boiler & Machinery Insurance
The Boiler & Machinery insurance program provides comprehensive coverage for
loss caused by machinery breakdown and explosion of steam boilers or other
covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident.
The current Boiler & Machinery insurance program provides coverage ($100 million
per occurrence/ with deductibles ranging from $25,000 to $350,000) for losses
caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damages to other property and improvements caused by the machinery breakdown, are covered by the boiler &
machinery insurance. This program augments the Sanitation District’s all-risk
property insurance that covers perils such as fire and flood.
The renewal of the Boiler & Machinery Insurance Program for the period July 1, 2010 through June 30, 2011 was at $15,578, a decrease of about 9 percent from the
prior year.
The current projected 2011-12 premium is $16,500, an increase of $922 (6%) over the 2010-11 premium.
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
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Revised: 06/04/03 Page 1
ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir.
AGENDA REPORT Item Number 4 Item Number
Orange County Sanitation District FROM: James D. Ruth, General Manager
Originator: Jeff Reed, Director of Human Resources
SUBJECT: Temporary Employment Services
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Purchase Order Agreement for Temporary Employment Services, Specification No. CS-2009-421BD, with temporary service firms for a total amount not to exceed $126,000 per year, for a one-year period July 1, 2011 through June
30, 2012, with a one-year renewal option;
B. Approve an annual contingency of $24,000 (19%); and, C. Authorize the General Manager to add or delete such firms as necessary to meet
work requirements as identified by the Human Resources Department.
SUMMARY
· Orange County Sanitation District’s (OCSD) strategic staffing plan includes utilizing
full-time and part-time regular employees, contract employees, and temporary employees. This report specifically focuses on temporary services employees who
are utilized as a supplement to the regular workforce for accommodating workload
demands and workflow fluctuations.
· The key advantage associated with temporary staffing is flexibility, since temporary employees are used for adjusting staffing levels quickly and for a limited timeframe.
Temporary services are utilized for filling approved budgeted positions due to illness,
vacations, leaves of absence, and vacant open positions; in addition, temporary
services are also used for approved special projects and budgeted capital improvement projects (CIP) that are non-engineering related.
· In June 2004, the Board of Directors awarded contracts for Temporary Employment
Services for a period of one year, renewable for a period of four years. The Board of Directors authorized staff to utilize a combination of several firms to supply temporary services to OCSD in order to provide staffing flexibility and to comply with
the OCSD Purchasing Resolution. These contracts expired on June 30, 2009.
Revised: 06/04/03 Page 2
Fiscal Year Amount
2011 – 2012 $150,000
2010 – 2011 $424,200
2009 – 2010 $760,020
2008 – 2009 $1,700,000
2007 – 2008 $1,700,000
PRIOR COMMITTEE/BOARD ACTIONS
· On June 24, 2009 Board Meeting – Entered into contracts for Temporary
Employment Services (Specification No CS-2009-421BD) with temporary service firms for a total amount of $450,000 per year, for a one-year period (July 1, 2009
through June 30, 2010), with a one-year renewal option. A $50,000 increase had
been added to the projected budget as a contingency fund for unplanned staffing
needs that adversely impacted OCSD staffing resources.
· May 26, 2004 Board Meeting - Temporary Employment Services: (1) Authorize staff
to establish contracts for Temporary Employment Services, Specification No.
S-2004-181BD, with temporary service firms for a one year period, July 1, 2004
through June 30, 2005, for a total amount not to exceed $1,700,000 per year; (2) Authorize staff the option of four additional one year contract renewals, cancelable at
any time, for a total amount not to exceed $1,700,000 per year; and, (3) Authorize
staff to enter into these contracts with temporary service firms, as identified by the
Human Resources Department, with the authorization to add or delete such firms as
necessary to meet OCSD work requirements.
ADDITIONAL INFORMATION
The proposed FY11/12 Operating budget for temporary services is $150,000. The Operating budget account for projected temporary services expenditures is $126,000.
A $24,000 increase has been added to the projected budget as a contingency fund for
unplanned staffing needs that adversely impact OCSD staffing resources such as
Leaves of Absences (LOA’s), promotions, and separations of employment. The
contingency fund is being requested based on prior committee actions mentioned above where staff had to request periodic increases for the use of temporary services for CIP
projects. This was due to CIP projects being initiated and approved by the Board during
the fiscal year; however, appropriate staffing was not pre-planned during the initial
budget process.
There are approximately 4 temporary employees currently assigned to OCSD working
predominantly on Information Technology, Engineering and Contracts assignments.
Information Technology utilizes temporary staffing to support streamlining and
automating of processes throughout the agency so that budgeted headcount does not
need to be increased; in addition, the appropriate technical specialists can be utilized to augment existing skill sets as needed and for a limited time. The Contracts Division is
utilizing temporary staffing to help support the full time staff due to the high amount of
CIP projects that OCSD currently has underway.
Revised: 06/04/03 Page 3
OCSD currently utilizes 8 temporary services agencies to provide temporary workers on
an as-needed basis to accomplish OCSD work requirements. The cost of a temporary
employee includes the temporary’s hourly rate. A mark-up rate is the “payment” to the
temporary agency to cover the benefits provided to the temporary worker and overhead costs of the temporary agency. The mark-up rates for the current temporary agencies utilized by OCSD range from 30% to 70%.
OCSD anticipates utilizing additional technical agencies in the future to meet
departmental needs; therefore, staff is requesting authorization to enter into similar temporary services agreements with other providers without having to return to the Board to approve each additional staffing agency. Human Resources staff interviews
each temporary agency prior to entering into a contract for services to ensure
administrative requirements are met for doing business with OCSD. Temporary
agencies work with the Purchasing Division to sign applicable forms and agree to the proper insurance and employment practices prior to entering into a contract with OCSD. The contract includes specific information related to work hours, billing rates, invoicing
and payment, confidentiality, etc.
The following is a list of current Temporary Employment Agencies under contract with OCSD:
Aerotek Inc.: (General, Engineering, Laboratory)
AppleOne Employment Services: (General)
Material and Contract Services - Procurement Services Associates: (Contract
Services) On Assignment - Lab Support: (Laboratory) TEG Staffing (Human Resources)
TekSystems: (Technical)
Project Partners (Technical)
Xyon Business Solutions:(Technical)
Award Date: 06/08/11 Contract Amount: $126,000/year Contingency: $24,000/year (19%)
JDR:LT:JR:RS:jmf
Page 1
ADMINISTRATION COMMITTEE Meeting Date
06/08/11
To Bd. of Dir.
06/22/11
AGENDA REPORT Item Number 5 Item Number
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: Santa Ana Watershed Project Authority (SAWPA) 2011-12 Rates
GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 11-XX, Establishing Use Charges for the FY 2011-12
Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana
Watershed Project Authority.
SUMMARY
Currently, OCSD invoices the Santa Ana Watershed Project Authority (SAWPA) on a
quarterly basis for the wastewater discharge we receive from the SARI line. Annually, the rates for flow, biochemical oxygen demand (BOD), and total suspended solids
(TSS) are calculated based upon OCSD’s fiscal year budget for treatment and disposal
costs and the 1996 Wastewater Treatment and Disposal agreement.
The FY 2011-11 rates are decreased 8.53% over the FY 2010-11 rates, due to the 8.53% decrease in OCSD’s total proposed FY 2011-12 treatment and disposal costs.
The rates calculated for each constituent for FY 2011-12 for wastewater discharge are:
Flow $146.43 BOD $224.61
TSS $333.39
These rates are separate from the rates charged for additional capacity purchases by
SAWPA.
PRIOR COMMITTEE/BOARD ACTIONS
June 23.2010 - Adopted Resolution No OCSD 10-09 Establishing Use Charges for the
FY 2010-11 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority.
June 25, 2009 - Adopted Resolution No OCSD 09-08 Establishing Use Charges for the
FY 2009-10 Pursuant to the Wastewater Treatment and Disposal Agreement with the
Santa Ana Watershed Project Authority.
Page 2
June 25, 2008 - Adopted Resolution No OCSD 08-09 Establishing Use Charges for the
FY 2008-09 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority.
June 27, 2007 - Adopted Resolution No OCSD 07-15 Establishing Use Charges for the
FY 2007-08 Pursuant to the Wastewater Treatment and Disposal Agreement with the
Santa Ana Watershed Project Authority. ADDITIONAL INFORMATION
None.
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A
Date of Approval Contract Amount Contingency
N/A N/A N/A
Enc.: Resolution No. OCSD 11-XX
JDR:LT:MW:AB:jmf
1
RESOLUTION NO. OCSD 11-XX
ESTABLISHING USE CHARGES FOR THE 2011-12 FISCAL YEAR
PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY
(“SAWPA”) A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE
COUNTY SANITATION DISTRICT ESTABLISHING USE CHARGES FOR THE 2011-12 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED
PROJECT AUTHORITY (“SAWPA”)
WHEREAS, the Board of Directors has approved the Wastewater Treatment and Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY
(“SAWPA”); and,
WHEREAS, said agreement provides for payment of Disposal Costs for the
measured and sampled flow of Wastewater discharged from SAWPA’s SARI Service
Area to Districts’ facilities; and,
WHEREAS, said agreement provides for adjustment of said Disposal Costs on an annual basis.
NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal
Agreement, the 2011-12 fiscal year charges for Disposal Costs are hereby established as
follows:
For Flow: $ 146.43 per million gallons of flow
For Biochemical Oxygen Demand: $ 224.61 per thousand pounds
For Total Suspended Solids: $ 333.39 per thousand pounds
PASSED AND ADOPTED at a regular meeting held June 22, 2010.
________________________________
Chair ATTEST:
___________________________
Clerk of the Board
Page 1
ADMINISTRATION COMMITTEE Meeting Date
06/08/11
To Bd. of Dir.
06/22/11
AGENDA REPORT Item Number 6 Item Number
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: Proposed Revisions to FY 2011-12 Budget.
GENERAL MANAGER'S RECOMMENDATION
Approve the proposed revisions to the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2011-12, as follows:
Originally Proposed Adopted Budget Revised Budget FY 2011-12 FY 2011-12
Operations & Maintenance $156,090,770 $152,545,540 Capital Improvement Program 122,423,000 129,169,900 Debt/COP Service Re-Purchase of Excess Capacity 97,052,940 29,690,000 92,162,910 29,690,000 General Liability and Property Self-Insurance 1,606,200 1,606,200 Worker's Compensation Self Insurance 550,000 550,000
TOTAL $407,412,910 $405,724,550
SUMMARY
Developing a two-year budget increases efficiencies and provides a longer planning horizon. This update represents known revisions to the second year of the two-year
budget.
The FY 2011-12 Proposed Revised Budget is enclosed for the Committee's
consideration. The Budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to
review the proposal prior to the June Board meeting.
Although each Committee has had an opportunity to review the proposal, it remains the
responsibility of the Administration Committee to recommend approval.
The Administration Committee is requested to recommend that the Board of Directors
approve this budget.
http://sharepoint/gm/board/Agenda Report Form Library/09.Budget Revision FY11-12.docx
Revised: 06/04/03 Page 2
PRIOR COMMITTEE/BOARD ACTIONS
The Board approved the FY 2010-11 and FY 2011-12 Two-Year Budget for the period July 1, 2010 through June 30, 2012, in June 2010. Budget overviews were presented to
the Administration and Operations Committees in June 2011.
ADDITIONAL INFORMATION
None.
ATTACHMENTS
1. Proposed FY 2011-12 Revised Budget
JDR:LT:MW:jf
I
Orange County Sanitation District, California
Budget Update
Fiscal Year 2011–12
Mission Statement
“We protect public health and the environment by providing
effective wastewater collection, treatment, and recycling.”
GFOA Budget Presentation Award
The Government Finance Officers Association of the United States and Canada
(GFOA) presented a Distinguished Budget Presentation Award to the Orange County
Sanitation District, California, for its biennial budget for the fiscal year beginning
July 1, 2010.
In order to receive this award, a government unit must publish a budget document
that meets program criteria as a policy document, as an operations guide, as a
financial plan, and as a communication device.
Table of Contents
OCSD Service Area ........................................................................................................................... i
Board of Directors ............................................................................................................................ ii
Board Committees ........................................................................................................................... iii
Orange County Sanitation District Organization Chart ................................................................... iv
Administrative Officials .................................................................................................................... v
Message from the General Manager ............................................................................................. vi
Finance Summary ............................................................................................................ 1
Financial Overview & Budgetary Issues ........................................................................................... 2
Where the Money Comes From ...................................................................................................... 6
Funding Sources by Category ......................................................................................................... 6
Where the Money Goes ................................................................................................................... 8
Funding Uses by Category .............................................................................................................. 8
Strategic Planning ........................................................................................................ 10
Capital Improvement Program Overview ................................................ 17
Debt Financing Program ......................................................................................... 19
Operating Expenses .................................................................................................... 20
Departments ...................................................................................................................... 24
Summary ........................................................................................................................................ 24
Office of the General Manager ...................................................................................................... 26
Human Resources ......................................................................................................................... 28
Administrative Services ................................................................................................................. 30
Facilities Support Services ............................................................................................................. 32
Engineering .................................................................................................................................... 34
Operations and Maintenance ........................................................................................................ 36
Appendix
Cash Flow Projection .................................................................................................................... A-2
Capital Improvement Program Summary ..................................................................................... A-4
Project Summary .......................................................................................................................... A-5
Capital Improvement Expenditure Graphs ................................................................................... A-6
Summary of Capital Requirements ............................................................................................... A-7
New Project Descriptions ........................................................................................................... A-14
Capital Equipment Budget Summary ......................................................................................... A-16
Capital Equipment Budget Detail ............................................................................................... A-18
Listing of Proposed Purchases Over $100,000 .......................................................................... A-19
Self-Funded Insurance Plans ...................................................................................................... A-20
Historical Staffing Summary ....................................................................................................... A-21
Historical Staffing Detail ............................................................................................................. A-22
Appropriations Limit ................................................................................................................... A-31
Miscellaneous Statistics ............................................................................................................. A-32
Wastewater Treatment Process
OCSD Service Area
i
OCSD Board of Directors
ii
Agency/City Active Director
Anaheim .................................................................... Harry Sidhu
Brea ........................................................................... Roy Moore
Buena Park ................................................................ Fred Smith
Cypress ..................................................................... Prakash Narain
Fountain Valley .......................................................... Larry Crandall – Chairman
Fullerton .................................................................... Sharon Quirk-Silva
Garden Grove ............................................................ Bill Dalton
Huntington Beach ..................................................... Joe Carchio
Irvine .......................................................................... Jeffrey Lalloway
La Habra .................................................................... Tom Beamish
La Palma .................................................................... Mark Waldman
Los Alamitos ............................................................. Troy Edgar – Vice Chairman
Newport Beach ......................................................... Steven Rosansky
Orange ...................................................................... Jon Dumitru
Placentia .................................................................... Constance Underhill
Santa Ana .................................................................. Sal Tinajero
Seal Beach ................................................................ Michael Levitt
Stanton ...................................................................... David Shawver
Tustin......................................................................... John Nielsen
Villa Park .................................................................... Brad Reese
Yorba Linda ............................................................... John Anderson
Sanitary/Water Districts
Costa Mesa Sanitary District .................................... James M. Ferryman
Midway City Sanitary District ................................... Joy L. Neugebauer
Irvine Ranch Water District ....................................... John Withers
County Areas
Member of the Board of Supervisors ....................... Janet Nguyen
OCSD Board Committees
iii
Steering Committee
Larry Crandall, Board Chair
Troy Edgar, Board Vice Chair
Tom Beamish, Operations Committee Chair
John Anderson, Administration Committee Chair
John Nielsen
Brad Reese
John Withers
Administration Committee
John Anderson, Chair
Brad Reese, Vice Chair
Joe Carchio
Jon Dumitru
Jeffrey Lalloway
Prakash Narain
Janet Nguyen
Sharon Quirk-Silva
Sal Tinajero
Mark Waldman
John Withers
Larry Crandall, Board Chair
Troy Edgar, Board Vice Chair
Operations Committee
Tom Beamish, Chair
John Nielsen, Vice Chair
Bill Dalton
James M. Ferryman
Michael Levitt
Roy Moore
Joy L. Neugebauer
Steven Rosansky
David Shawver
Harry Sidhu
Fred Smith
Constance Underhill
Larry Crandall, Board Chair
Troy Edgar, Board Vice Chair
GWR System Joint Cooperative Steering Committee
Larry Crandall
James M. Ferryman
Mark Waldman
Sharon Quirk-Silva (Alternate 1)
Tom Beamish (Alternate 2)
Constance Underhill (Alternate 3)
Organization Chart
iv
General
Counsel Office
Board of
Directors
General
Manager
Operations &
Maintenance
–Operations &
Maintenance
Administration
–Plant No. 1
Operations
–Plant No. 2
Operations
–Mechanical
& Reliability
Maintenance
–Instrumentation
& Electrical
Maintenance
–Environmental
Laboratory &
Ocean Monitoring
Engineering
–Engineering
Administration
–Planning
–Project
Management
Office
–Engineering &
Construction
–Asset
Management
–Environmental
Compliance
Facilities
Support
Services
–Facilities
Support Services
Administration
–Equipment /
Rebuild
–Facilities
Engineering
–Collection
Facilities
Administrative
Services
–Administrative
Services
–Financial
Management
–Contracts,
Purchasing &
Materials
Management
–Information
Technology
–Risk
Management
General
Management
Administration
–General
Management
Administration
–Board Services
–Public Affairs
Human
Resources
–Human Resources
Administration
–Labor & Employee
Relations
–Employee
Development &
Training
Administrative Officials
v
Management Team
General Manager ........................................................................................................ James D. Ruth
Assistant General Manager .................................................................................... Robert P. Ghirelli
Assistant General Manager/Director of Engineering ........................................... James D. Herberg
General Counsel ............................................................................................................... Brad Hogin
Director of Finance and Administrative Services ....................................................... Lorenzo Tyner
Director of Human Resources .................................................................................. Jeffrey T. Reed
Director of Facilities Support Services ............................................................ Nicholas J. Arhontes
Director of Operations & Maintenance ................................................................. Edward M. Torres
Message from the General Manager
vi
June 2, 2011
Honorable Chair and Board of Directors:
I am pleased to submit this update to the Orange County Sanitation District (OCSD) 2011-12 approved
operating budget and capital improvement program. This document provides a framework for District
activities during the second year of the adopted two-year budget for Fiscal Years 2010-11 and 2011-12 and
serves as a source of information for the District’s Board of Directors, and our employees and ratepayers.
This is an important time for the District. During the short two-year timeframe of this budget, we will
complete our half-billion dollar upgrade to full secondary treatment ensuring that the water going to the
ocean and the Groundwater Replenishment System is of the highest quality.
As we approach the next year, we are focused on how our business is changing and adapting. In
preparation, we spent much of the year retooling, refocusing and restructuring OCSD.
In the summer of 2010, we initiated an effort known as the Beyond 2012 Strategic Planning Framework to
guide all future planning and more tightly integrate our priorities, strategic planning and budget
implementation. Working with the executive team the General Manager solicited input from OCSD’s
managers then held a workshop with the Board of Directors on October 20, 2010. At this workshop, the
Board members discussed and deliberated changes and additions to the plan. The plan was then
unanimously approved by the Board.
This effort provided a foundation for our updated Five-Year Strategic Plan. Presented to the Board in
December 2010, the plan summarized the District’s Mission and Vision statements, Levels of Service, and
Business Plan and focused on Full-Cost Recovery to ensure a fair share recovery of costs for services.
As a result of these strategic efforts, this budget adds additional emphasis to certain key areas including:
Operations Study
The Plan of Secondary Treatment (POST) is being developed to provide a road map for optimizing
the operation and maintenance of the five secondary treatment processes, considering factors such
as regulatory compliance, GWRS requirements, staffing demands, costs, and control of pollutants of
emerging concern. In order to gather and refine essential data, we completed workshops with a
diverse group of internal stakeholders. The final report should be finalized by early July 2011.
Biosolids management
Staff will aggressively monitor the commissioning of the Enertech facility to ensure it is meeting our
needs. We will implement the board-approved OpenCel research project to evaluate its
effectiveness in reducing the volume of biosolids produced while increasing gas production, and
evaluate other opportunities to ensure long-term, sustainable options are available for managing our
biosolids.
Sustainable energy production
Staff will focus on achieving sustainable energy production through the implementation of AQMD-
approved engine emission controls, commissioning of our fuel cell demonstration project,
completion of an engineering feasibility analysis of alternative energy options, and actions needed to
comply with AB 32 greenhouse gas requirements.
2011–12 Budget Update
vii
Chemical Optimization
As the District spends more than $15 million annually on chemicals, staff will complete a comprehensive
review of our chemical usage and identify opportunities to optimize disinfection, chemical availability,
odor control in the treatment plants and collection system, and alternative approaches (such as super
oxygenation).
SARI Line relocation
We are working with the County of Orange, Army Corps of Engineers, and SAWPA to complete the
relocation of the Santa Ana River Interceptor (SARI) Line. Staff will be diligent in protecting OCSD
interests on our $72 million dollar construction loan to the County of Orange. Bids should be awarded
by the Orange County Board of Supervisors in July 2011.
The $406 million budget ($155m in operating, $129m in capital, $92m in debt service, $30m in other agency
costs) addresses rising treatment and chemical costs, aging infrastructure and increased regulatory
requirements. There is a $1.4 million reduction from the 2011-12 Budget previously approved June 2010.
With our revised organizational focus and support of new initiatives, this budget recognizes our austere times
and focuses on the efficient use of our existing resources and improved organization to more fully support our
mission and core business of treating sewage.
OCSD provides wastewater treatment, sewer and facilities maintenance, ocean monitoring and many other
services with residential user fees averaging $22 per month, one of the lowest rates in the state without any
reduction in service levels.
We continue to serve our 2.5 million residents and businesses by processing of 210 million gallons of
wastewater each day without adding staff and holding the line on costs. In fact, the proposed staffing level is
less than it was five years ago when I first came to the District.
I believe that this budget update fully supports the goals included in the District’s Strategic Plan and positions
us well to address the challenges ahead. I look forward to another dynamic and productive year of leading the
organization.
James D. Ruth
General Manager
2011–12 Budget Update
1
Finance Summary
Financial Summary
Overview & Budgetary Issues
2
Budget Overview
The District’s proposed 2011-12 operating and
capital improvement budget totals $405.8 million, or
0.4 percent below what was approved last year as
the second year of the adopted two-year budget. The
decrease in the 2011-12 budget is primarily
attributable to reductions in various areas of the
operating budget reflecting lower cost increases than
previously anticipated.
The budget continues to reflect the agency’s ongoing
efforts to streamline operations. Staffing levels are
proposed to be reduced by four full-time equivalent
(FTE) positions or 0.6 percent below the level
originally approved while operational service levels
increase as secondary treatment facilities continue to
come into service to meet full secondary treatment
standards by December 2012. This increase in
efficiency will be achieved in part due to the major
“Beyond 2012” staffing reorganization that was
begun in August 2010.
The District’s Capital Improvement Program (CIP)
budget for Fiscal Year 2011-12 is $129.2 million.
This CIP budget finances collection system, joint
works treatment and disposal system improvement
projects. The $6.8 million increase from the originally
proposed budget is attributable to the timing
of construction cash outlays as we meet our
infrastructure needs.
Financing
The District uses long-term borrowing (Certificates
of Participation [COP]) for capital improvements
that cannot be financed from current revenue.
Before any new debt is issued, the impact of debt
service payments on total annual fixed costs is
analyzed. Debt financing of $165 million is forecasted
over the next six years to assist in the funding
of the $1.9 billion in capital improvements required
over the next ten years. New money debt was issued
in the amount of $157 million in 2010-11 and no new
debt issuances are scheduled for 2011-12.
Staffing
Reflecting the organization’s commitment to
providing service at the lowest costs, the budget
includes a reduction of 4 full-time equivalent (FTE)
positions in 2011-12 to an authorized staffing level of
637 FTE positions.
This staffing level continues to reflect a significant
reduction from the Fiscal Year 1995-96 approved
staffing level of 678 FTE positions. Personnel costs
will escalate due to increases in group insurance
and retirement premiums, as well, as provisions of
current bargaining agreements. The District will
continue to effectively manage these expenses with
approximately 24.1 percent of the budget allocated
to employee costs.
Level of Treatment
The agency’s two treatment plants, located in
Fountain Valley and Huntington Beach, process
about 210 million gallons of wastewater each day
generated by approximately 2.5 million people in
central and northwest Orange County. The proposed
budget to operate, maintain and manage our sewage
collection, treatment and disposal system in 2011-12
is $154.7 million.
The cost per million gallons of wastewater treated,
(an industry-wide performance measurement),
is expected to increase in Fiscal Year 2011-12 to
$2,019, a $26, or 1.3 percent increase over the
previous 2011-12 projection of $1,993 due to lower
projected flows, as total operating costs are being
proposed at a reduction of $3.5 million.
To eliminate most bacteria from being released from
the ocean outfall, in Fiscal Year 2002-03 the District
began using chlorine bleach to disinfect the effluent
and then applying sodium bisulfite to remove
remaining chlorine prior to releasing the treated
wastewater to the ocean.
To protect the animal life living in the ocean, the
District continues to take great measures to limit the
chlorine residual to essentially non-detectable levels.
This mode of disinfection is anticipated to continue
for the short-term, possibly two years, while OCSD
studies, designs and constructs permanent facilities,
and considers alternate disinfection technologies.
Beginning in Fiscal Year 2002-03, the addition of
disinfection treatment required an annual outlay for
additional chemicals in the operating budget. The
cost for disinfection is projected to be approximately
$3.6 million in Fiscal Year 2011-12.
2011–12 Budget Update
3
Capital Improvement
Program (CIP)
The total CIP cash flow outlay for Fiscal Year 2011-12
is being proposed at $129.2 million, up $6.8 million
from the previously approved 2011-12 budget due
mostly to deferral of CIP projects from 2010-11 into
2011-12.
Over the next 10 years, the District’s Capital
Improvement Program will:
Rehabilitate the existing headworks, primary
treatment, outfall pumping, solids handling
facilities, and the utility systems at both
treatment plants.
Replace or rehabilitate nine of OCSD’s outlying
pumping stations, and rehabilitate and upgrade
26 trunk sewer improvement projects.
Optimize the production of power and biosolids
at each of the treatment plants.
Achieve secondary treatment standards
by December 2012.
Five Projects Drive the CIP
Over the next 12 months, secondary upgrade
projects required to achieve secondary treatment
standards will continue to significantly impact the
CIP. The New Plant No. 1 Secondary Treatment
System is expected to require outlays of $8.9 million
in 2011-12.
Two of the larger Collection System related projects
in the 2011-12 proposed budget are the $31.7 million
Bitter Point Pump Station Replacement with 2011-12
proposed cash outflows of $9.0 million and the $22.1
million Magnolia Trunk Sewer Rehabilitation with
2011-12 proposed cash outflows of $9.7 million.
Two other projects will also have a sizeable impact
on the CIP over the next year. The Sludge Digester
Rehabilitation at Plant No. 1 and the Headworks
Improvements at Plant No. 2 projects are expected to
require $16.6 million and $4.9 million, respectively.
Together, these five projects represent 38 percent of
the total Fiscal Year 2011-12 proposed CIP cash flow
budget of $129.2 million.
Groundwater Replenishment
(GWR) System
The OCSD Strategic Plan includes water reclamation.
With the Orange County Water District (OCWD), we
began operating the Groundwater Replenishment
(GWR) System, the nation’s largest water reclamation
project, in January 2008.
The GWR System currently reclaims 70 million
gallons of water a day, delaying the need to build
a second outfall which could cost more than $200
million. OCSD and OCWD equally shared the
expenses of Phase I of the project. OCSD received
approximately $44 million in Federal and State grants
to offset part of the Sanitation District’s total costs.
Phase II will increase the production of reclaimed
water to 100 million gallons a day. The project, which
will be funded entirely by the OCWD, is anticipated
to be completed in 2013. OCSD is directing all
reclaimable flows to Plant No. 1 in support of
providing maximum amounts of specification
water for reclamation.
Moving Towards
Secondary Treatment
In July 2002, the Board of Directors approved
a change from the existing level of treatment,
a blend of 50 percent advanced primary and 50
percent secondary treated wastewater, to secondary
treatment standards. The reasoning behind the
decision to move to secondary standards included
(1) the remote possibility that bacteria from the
ocean outfall may at times reach the shoreline, (2)
upgraded treatment will aid additional water
reclamation with the Orange County Water District,
(3) and the public’s clearly stated preference for
upgrading wastewater treatment at this time.
The 2011-12 CIP includes three projects totaling
$623 million to upgrade the District’s treatment
plants to meet secondary treatment standards.
Construction of the facilities to meet secondary
treatment standards is currently on track to be
completed by December 31, 2012.
Sewer Service Fee Increases
The proposed 2011-12 single family residential rate,
the underlying basis for all sewer rates, is $267. This
proposed rate by the District is still well below the
State’s annual average sewer rate of $406, according
to a 2008 survey of 726 agencies in California.
Financial Summary
Overview & Budgetary Issues
4
Operating Budget Increase
The operations budget for the collection, treatment,
and disposal of wastewater is proposed at $154.7
million, a $3.5 million, or 2.2 percent decrease from
the previously approved 2011-12 budget.
Although individual expenses will increase or
decrease slightly, the overall decrease to the
operating budget is primarily attributable to six
specific areas:
Personnel Costs – $1.3M
Although staffing is being proposed at 637 full time
equivalent (FTE) positions, below the previously
approved 641 FTEs for 2011-12, costs will increase
$1.3 million. This increase is partially a result of
existing collective bargaining agreement impacts,
including health and welfare cost increases.
The other significant increase in personnel costs
is the $0.6 million (3 percent) increase in retirement
premiums. This increase reflects revised actuarial
assumptions and low interest earnings in prior years.
The increases in retirement premiums reflect the
rising costs occurring throughout California.
Operating Materials
& Supplies – ($2.3M)
As the requirement for better quality effluent
increases, so does the need for chemicals to treat
the region’s wastewater.
Operating materials and supplies are proposed to
decrease, however, primarily because combined
increases in chemical coagulants, odor control, and
disinfection are expected to be lower than originally
anticipated.
Contractual Services – ($1.0M)
The major component of this category is biosolids
removal and transportation costs. These costs
continue to rise however, cost increases in this area
were less than previously anticipated.
Utilities – ($1.7M)
There are reductions identified in natural gas
utilization because Plant 2 Central Generation
Operations automation controls have been
successful in reducing natural gas usage. There is
also a decrease in electricity costs related to a lower
projected energy rate increase.
Repairs & Maintenance –
$900,000
This expense category includes parts and services
for repairing aging treatment plant and collection
facilities, and reflects base budgets for equipment
maintenance, as well as out-sourced annual service
contracts and maintenance agreements. The Fiscal
Year 2011-12 proposed budget increase includes
$504,000 for aeration deck crack repairs at Plant 2,
and $363,000 for replacement of flexible disks in the
Plant 1 aeration basin, in addition to increases in
basic repairs and maintenance costs.
Cost Allocation – ($900,000)
Increase in cost allocation charges to the capital
improvement program due to the Beyond 2012
reorganization and the concentration of work
performed by the employees transferred to new
divisions from the Operations and Maintenance
Department.
FY 2010-11
Approved
FY 2011-12
Approved
FY 2011-12
Proposed
Revision
$153M
$158M $155M
+3%-2%
Operating Expenses
Total budgeted operating and maintenance
expenses will increase $2 million from FY 2010-11.
2011–12 Budget Update
5
Primary basins at OCSD Treatment Plant No. 2 taken by Plant Operator Paul
Ward.
Financial Summary
Where the Money Comes From
6
Funding Sources by Category
(in millions)
Where the Money Comes From
Other
$11.9M
1.2%
Interest
$11.7M
1.2%
Property Taxes
$63.4M
6.5%
Fees & Charges
$285.1M
29.1%
Debt Proceeds
$0.0M
0.0%
Beginning Reserves
$607.0M
62.0%
Category
2010-11
Approved
2011-12
Approved
2011-12
Updated
Proposed
Beginning Reserves $448.4 $488.4 $607.0
Service Fees 248.7 271.0 266.9
Permit User Fees 11.6 12.7 11.4
Capital Facilities Capacity Charges 6.5 6.8 6.8
Property Taxes 60.3 60.3 63.4
Interest 9.3 9.8 11.7
Other Revenue 5.6 11.6 11.9
Debt Proceeds 157.0 50.0 0.0
Total Funding Sources $947.4 $910.6 $979.1
Financial Summary
Funding Sources by Category
7
Funding Sources by Category
The District has a variety of revenue sources
available for operating and capital expenses.
The major revenue sources are as follows:
Beginning Balances
Service Fees
Industrial Waste Permit User Fees
Connection Fees
Property Taxes
Interest Earnings
Other Miscellaneous Revenue
Debt Proceeds
Beginning Reserves – $607M
As a result of its Reserve and Investment Policies,
the District will begin the year with a balance carried
forward from the previous year.
General Service Fees – $267M
User fees are ongoing fees for service paid
by customers connected to the sewer system.
A property owner, or user, does not pay user fees
until connected to the sewer system and receiving
services. Once connected, a user is responsible
for his share of the system’s costs, both fixed and
variable, in proportion to his demand on the system.
These fees are for both Single Family Residences
(SFR) and Multiple Family Residences (MFR).
The proposed 2011-12 single family residential rate,
the underlying basis for all sewer rates, is $267. This
proposed rate by the District is still well below the
State’s annual average sewer rate of $406, according
to a 2008 survey of 726 agencies in California.
Permit User Fees – $11M
Large industrial and commercial properties that
discharge high volumes or high strength wastewater
are required to obtain a discharge permit and pay
extra fees. These fees are for the owner’s share
of the system’s costs, both fixed and variable,
in proportion to the demand placed on the system.
These fees are being reduced from the original FY
2011-12 budget of $12.7 million to $11.4 million due
to the current recession.
Capital Facilities Capacity
Charges (CFCC) – $7M
CFCC is a one-time, non-discriminatory charge
imposed at the time a building or structure is newly
connected to the District’s system, or an existing
structure is expanded. This charge pays for District
facilities in existence at the time the charge is
imposed, or to pay for the construction of new
facilities in the future that are of benefit to the
property being charged.
Property Taxes – $63M
The County is permitted by State law (Proposition
13) to levy taxes at 1 percent of full market value
(at time of purchase) and can increase the assessed
value no more than 2 percent per year. The District
receives a share of the basic levy proportionate
to what was received in the 1976 to 1978 period less
$3.5 million, the amount that represents the State’s
permanent annual diversion from special districts
to school districts that began in 1992-93. The
District’s share of this revenue is dedicated for the
payment of debt service.
Interest Earnings – $12M
Interest earnings are generated from the invest-
ment of accumulated reserves consisting of a cash
flow/contingency, a capital improvement, a renewal/
replacement, and a self-insurance reserve.
Other Revenue – $12M
Other revenue includes $8.4 million from the
sale of additional capacity rights to the Santa Ana
Watershed Project Authority.
Debt Proceeds – $0M
Certificates of Participation (COPs) are the District’s
primary mechanism for financing capital projects.
COPs are repayment obligations based on a lease
or installment sale agreement.
In 2011-12, the District is scheduled to issue
no new money COPs to assist with the financing of
the $129 million in capital outlays scheduled for this
fiscal year.
Financial Summary
Where the Money Goes
8
Where the Money Goes
Funding Uses by Category
(in millions)
CIP
$129.2M
13.2%
Ending Reserves
$573.3M
58.6%
Operating
$154.7M
15.8%
Debt
$92.2M
9.4%
Equity Sales
$29.7M
3.0%
Category
2010-11
Approved
2011-12
Approved
2011-12
Updated
Proposed
Capital Improvement Program $180.2 $122.4 $129.2
Debt Service 89.7 97.1 92.2
Operating Expenses 152.5 158.2 154.7
Equity Sales 36.6 29.7 29.7
Subtotal $459.0 $407.4 $405.8
Ending Reserves 488.4 503.2 573.3
Total Funding Uses $947.4 $910.6 $979.1
Financial Summary
Funding Uses by Category
9
Funding Uses by Category
The District budgets its funds in five distinct areas:
Capital Improvement
Program (CIP)
In order to provide the appropriate level of service to
the District’s rate payers, large capital improvements
are required. The CIP provides for the management
and implementation of these improvements.
Debt Service
This is the cost of issuing debt. Long-term debt
financing allows the District to complete large multi-
year capital projects by providing funds not always
immediately available.
Operating Expenses
The proposed budget allocates resources
to operate, maintain and manage our sewage
collection, treatment and disposal system and
for any associated administrative or technical
requirements.
Equity Sales
In accordance with Amendment No. 2 to the
Agreement for Purchase and Sale of Capacity Rights
in Treatment, Disposal and Sewer Facilities between
Irvine Ranch Water District and Orange County
Sanitation District dated November 15, 1995,
ownership is adjusted annually to reflect the
current equity percentage ownership based on
sewage flows.
Reserves
The District budgets for reserves for various
potential needs including cash flow, operating
contingencies, capital improvement, and replace-
ment and catastrophic loss. The reserve levels
are governed by District policy.
New secondary treatment system facilities in construction
at Plant No. 1.
Strategic Planning
10
Introduction
Driven by the mission, vision and core values of
the Strategic Plan, OCSD continues aggressive efforts
to meet the sanitation, health, and safety needs of
the more than 2.5 million people we serve while
protecting the environment where we live.
Mission Statement
The Mission Statement is the basic foundation that
defines why we exist.
“We protect public health and the environment
by providing effective wastewater collection,
treatment, and recycling.”
Vision Statement
Our Vision Statement supports the Mission Statement
by expressing a broad philosophy of what the Orange
County Sanitation District strives to achieve now and
in the future in the delivery of services to our
customers, vendors, other agencies, the general
public, and each other.
Making decisions in an open and honest way
to produce optimum financial, environmental
and societal results.
Cooperating with other stakeholders to protect
the ocean and regional water resources for the
people we serve.
Beneficially recycling wastewater, biosolids
and other resources using safe and effective
processes and systems.
Developing the best possible workforce by
providing employees with opportunities to
advance their careers through enhanced growth,
responsibility, and professional development.
Core Values
Our Core Values support the Mission and Vision
Statements by expressing the values, beliefs, and
philosophy that guides our daily actions. They help
form the framework of our organization and reinforce
our professional work ethic.
Honesty, Trust and Respect
We aspire to the highest degree of integrity, honesty,
trust, and respect in our interaction with each other,
our suppliers, our customers, and our community.
Teamwork and Problem Solving
We strive to reach OCSD goals through cooperative
efforts and collaboration with each other and our
constituencies. We work to solve problems in a
creative, cost-effective and safe manner, and we
acknowledge team and individual efforts.
Leadership and Commitment
We lead by example, acknowledging the value of
our resources and using them wisely and safely to
achieve our objectives and goals. We are committed
to act in the best interest of our employees, our
organization, and our community.
Learning/Teaching – Talents, Skills and Abilities
We continuously develop ourselves, enhancing our
talents, skills, and abilities, knowing that only through
personal growth and development will we continue
to progress as an agency and as individuals.
Recognition/Rewards
We seek to recognize, acknowledge and reward
contributions to OCSD by our many talented
employees.
Operating Philosophy
The Orange County Sanitation District is a public
agency that is successful by working as a team and
by leveraging our efforts with other public agencies.
We think like a business and act in the public
interest, all the while emphasizing the ABC’s of
our operating philosophy:
Accountability
We maintain accountability for our commitments
and for our behavior. We use measurable short-term
and long-term goals. We use methods that regularly
check our collective and individual progress in
achieving our commitments. We measure and expect
honest, respectful, open and constructive behavior in
ourselves and from the people with whom we work.
Balance
We achieve balance in what we do. Work matches
our capacity to perform it. We look for economies
of operation without sacrificing quality or causing
unreasonable risk. We consistently perform our core
work and meet our basic wastewater management
responsibilities while being willing to take on
new initiatives that improve environmental quality
or service in the community we serve.
Communication
We promote timely and accurate communication
with the many different people who make up our
community of interest. Staff and management
communicate freely, openly and honestly to solve
problems and to achieve constructive change.
2011-12 Budget Update
11
We provide our Board of Directors with accurate
and timely information about matters that impact
their policy making and affect the wider interests
of Orange County.
We provide opportunities for the public, the media
and our staff to become informed about our activities
and to provide input during our deliberations.
Risk Register
During annual strategic level risk assessment and
mitigation workshops, the Executive Management
Team identifies weaknesses and threats and assesses
strategic and organization-wide risks facing the
District. The team also identifies mitigation measures
that the District currently has in place, proposes
additional mitigation measures that the District
considers appropriate; and develops an action plan
of responsibilities and timeframes for follow-up.
The information generated from these workshops
are compiled and documented within the District’s
Risk Register.
Several Strategic Plan long and short-term goals
reflect mitigation measures. Several of the risks
involve preparedness for uncontrollable events,
such as terrorist attacks and natural disasters.
Several are concerned with finance, and many
are compliance-related.
The 2011 Risk Register Update identified these as the
top risks:
Financial crisis/difficult economy
Disaster and aftermath
Public sentiment against needed funds
Retirement of experienced employees
The 2010 Risk Register Update identified these as the
top opportunities:
Reorganize as people/facilities change –
recognizes that a number of new facilities will
soon be put to use at approximately the same
time as a number of long-time employees
may retire.
Hire good staff – refers to the opportunity to
find and hire competent and experienced
people during a time when many are
available.
Focus on mission without other costly
endeavors – refers to the potential to maintain
focus on the District’s core mission without
engaging in other activities which might add
to the District’s costs.
OCSD Long-Term Planning
Long-Term Strategic Goals should be acceptable,
flexible, measurable, motivating, suitable, under-
standable, and achievable. The Long-Term
Goals are the results the District seeks to achieve
over a specified period, usually three to five
years. The Risk Register contains several long-
term concerns requiring short and long-term
strategic planning.
Several goals were completed in the last year:
Review Interagency Agreements
Strategic Business Plan and Business
Accountability Charters
Enterprise Information Technology Strategic Plan
Chemical Supplies/Chemical Sustainability
Disposition of North County Yard
Other interrelated, long-term goals will remain as the
District continues to construct the facilities required to
reach full secondary treatment at the end of 2012. As
secondary treatment facilities are completed, more
biosolids will be produced. New centrifuge/solids
processing projects should improve dewatering and
decrease the wet tons of biosolids hauled.
Currently, the land reuse options are scarce and
other new technologies that the District is planning
will become the more available, more expensive,
biosolids management options.
The biosolids long-term goal will continue until a
viable, cost-efficient, and effective method of
reuse is available.
Strategic Planning
12
Long-Term Goals
Goals
FY 2010-11 Progress
SARI Line Relocation
Staff continues to work in conjunction with the County of Orange and the Federal
Government to relocate the Santa Ana River Interceptor Line by March 2013. Bids
for construction of the project were received and reviewed, and an expected
Notice to Proceed is anticipated in June 2011.
Fuel Cell Evaluation
The 300 kW demonstration unit was started up in FY 2010-11. In FY 2011-12,
staff will evaluate cost feasibility of replacing or supplementing CGS engines with
fuel cells, and in FY 2012-13, staff will evaluate performance and fuel clean up
effectiveness of the unit.
Biosolids Management
Staff continues to monitor both opposition to land application in Kern County and
Arizona, and availability of sustainable cost-effective alternatives. EnerTech was
selected as a joint project for biosolids reuse, partnering with several agencies.
Optimization of the facility is progressing after several unexpected operational
problems.
The recently completed 5-year research strategic plan identified several projects
targeted at reducing the quantity of biosolids produced; this is scheduled for
completion during FY 2011-12.
Engine Emission
Compliance
The study to evaluate alternatives for complying with lower emission limits in the
South Coast Air Quality Management’s Rule 1110.2. has been completed. The
demonstration testing must also be completed, and then the negotiation of engine
emission limits and schedule with SCAQMD. By FY 2013-14, the District will
implement capital improvements or operations modifications in order to achieve
compliance.
Review Interagency
Agreements
OCSD and Santa Ana Watershed Project Authority (SAWPA) staff met frequently to
discuss issues related to SARI line flows, rates, and long-term planning. After
several meetings, the decision was made to follow the terms of existing
agreements.
OCSD and Irvine Ranch Water District (IRWD) staff finalized agreements on issues
related to sewer charges, reserves, cash balances, biosolids costs, and odor
control costs. New agreements are now in place for leasing solids processing
capacity and calculating biosolids and chemical costs. A temporary agreement for
additional IRWD flow is in process.
Odor Control
Minimizing odor complaints is a priority. Chemical addition in the collection system
has increased. Plant odors will be contained within the treatment plant boundaries
by completing Odor Control Projects at Plant 1 and Plant 2 by 2016. Projects
P1-113 (Trickling Filters at Plant 1) and P2-102 (Solids Storage at Plant 2) have been
designated to satisfy odor control compliance in these areas. These projects are
scheduled to start design in 2012.
Full-Cost Recovery
Conduct a comprehensive review of the Sanitation District’s Urban Runoff Program
to ensure a fair share recovery of costs for services.
Local Sewer Services
Local Sewer Transfers completed in 2010 are: Costa Mesa Sanitary District (3
miles); Irvine Ranch Water District (0.1 miles, along with review of 44 miles
transferred in 2003); Tract 3709 near La Mirada (0.8 miles); City of Orange Phase I
(4.4 miles); and City of Anaheim (0.5 miles). Planned transfers include: City of
Tustin (174 miles); City of Newport Beach (20 miles); Fairgrounds to Costa Mesa
Sanitary District; and City of Orange Phase II (7.5 miles).
2011-12 Budget Update
13
Strategic Initiatives – Short-Term Goals
There were several Short-Term Goals that supported the Long-Term Strategic Goals of the District. The updates
and the completed portions of several Long-Term Goals are included in the following table.
Status Short-Term Goals
Ongoing
Plan and Maintain a Sustainable Capital Improvement Program –The team continued work on the
original plan. Tasks complete include: issue a call for new projects and prepare materials for
Manager and EMT review and prioritization of new requests; work on validating all CIP project
budgets and scopes of work with updated estimated cost at completion for the entire program;
and complete ASCE Peer Review of our CIP management program and present findings to the
Board of Directors.
Ongoing
Disinfection of Final Effluent –Develop a cost-effective program to sustain protection of public
health associated with bacteria in the effluent and incorporate program elements into our NPDES
Permit.
Ongoing Ongoing Leadership Development –Maximize the development of a pool of dedicated and talented
employees ready to lead OCSD into the future.
Complete Management System for Environmental Compliance –Implement a management control system
for environmental compliance information that incorporates a dashboard-style report.
Complete
Climate Change/Greenhouse Gases –Complete development of statewide emission inventory
protocol for publicly-owned treatment works and submit mandatory emission inventory to the
California Air Resources Board annually.
Complete
Contaminants of Potential Concern (CPC)–Complete three phase testing and analysis of 550+
CPC, prepare report on findings and recommendations, develop initial source control strategy if
there are CPCs identified that require control.
Complete Complete Facilities Master Plan Update –Complete a comprehensive update of the Facilities
Master Plan and obtain Board approval.
Complete
Sustainable Biosolids Program –Evaluate option of processing some of biosolids at the City
of Los Angeles Terminal Island demonstration well;
Evaluate the feasibility of deep injection/methane recovery including commissioning a study of the
geological formations below Plants 1 and 2, and availability and acceptability of any existing wells;
Complete new in-county Compost Take-Back Program Plan strategy.
Complete Succession Plan - Implement the succession management plan including management training and
the creation of a Leadership Academy.
Complete
Enterprise Information Technology Strategic Plan –Develop and publish a three year Information
Technology Strategic Plan based on the master OCSD strategic plan.
Complete Improve the Sanitation District Security –Provide long-term security enhancements at both
treatment plants and within OCSD’s Collections System.
Complete
Safety and Health Strategic Plan –Develop and implement a Safety and Health Strategic Plan for all
OCSD activities.
Complete
Human Resources Strategic Plan –Design, develop and implement human resources policies,
practices systems and tools to ensure OCSD has a workforce that meets future needs of OCSD
and the public it serves.
Strategic Planning
14
Levels of Service
The Levels of Service included in the following tables support the strategic vision, mission, ethics, goals,
and initiatives of the District and include key performance indicators of the Operational targets.
Level of Services Target Accomplishments for FY 2010-11 and Accomplishments for FY 2010-11
Environmental Stewardship:
OCSD will protect public health and the
environment. FY 10–11 Target FY 10–11 Results
Provide capacity to collect and treat dry weather urban
runoff 4 mgd 1.1 mgd
Maximum off-site odor impact (in D/T*)
Reclamation Plant No. 1
Treatment Plant No. 2
14 D/T
17 D/T
42 D/T
48 D/T
Air emissions health risk to community, cancer risk per 1
million Employees <10 9
Permit compliance (air, land, and water) 100% 99%
OCSD will be a good neighbor. FY 10–11 Target FY 10–11 Results
Odor complaint response
Treatment Plants within1 hour
Collection System within 1 working day
100%
100%
100%
100%
Odor complaints
Reclamation Plant No. 1
Treatment Plant No. 2
Collection System
32
4
34
8
6
14
Restore collection service to customer within 8 hours 100% 100%
Respond to collection system spills within 1 hour 100% 100%
2011-12 Budget Update
15
Business Principle:
OCSD will exercise sound financial management. FY 10–11 Target FY 10–11 Results
COP service Principal and Interest < O&M expenses <O&M expenses
Annual user fees
Sufficient to cover all
O&M requirements
Sufficient to cover all
O&M requirements
Annual increase in collection, treatment, and disposal costs per
million gallons <10% 0.15%
Annual reserve level over adopted reserve policy level +/-5% -0.0046%
OCSD will be responsive to our customers.FY 10–11 Target FY 10–11 Results
Respond to public complaints or inquires regarding
construction projects within 1 working day >90% >90%
New connection permits processed within one working day
>90% >90%
Strategic Planning
16
Wastewater Management:
OCSD will provide a safe reliable effluent for recycling. FY 10–11 Target FY 11–11 Results
Concentration of emerging chemical constituents of concern in
Plant No. 1 secondary effluent
NDMA =< 150 ppt
1,4 Dioxane =< 5 ppb
NDMA = 24.9 ppt
1,4 Dioxane =2.58 ppb
Meet GWRS specification requirements for Plant 1 secondary
effluent (NTU) 5 3.4
Thirty-day geometric mean of total coliform bacteria
in effluent after initial dilution <1,000 mpn 860 mpn
Industrial compliance with permits to discharge into OCSD
sewers
>90% permit
compliance
100% permit
compliance
Meet secondary treatment standards BOD 100 mg/L
TSS 55 mg/L
BOD 32 mg/L
TSS 26 mg/L
OCSD will manage flows reliably. FY 10–11 Target FY 10–11 Results
Frequency of use of emergency one-mile (78-inch diameter)
outfall
0 per year during dry,
less than once per 3
years in peak wet
weather
0
Sanitary sewer spills per 100 miles < 2.1 < 2.1
Contain sanitary sewer spills within 5 hours 100% 100%
OCSD effluent will be recycled. FY 10–11 Target FY 10–11 Results
Provide up to 104 mgd specification effluent to the
Groundwater Replenishment System 104 mgd 77.5 mgd
OCSD will implement a sustainable biosolids
management program.
FY 10–11 Target FY 10–11 Results
National Biosolids Partnership Certification for Biosolids
Environmental Management System
Maintain NDB
Certification
Maintained
Percent of biosolids recycled
>95% recycled
<5% to landfill
100% recycled
0% to landfill
Workplace Environment:
OCSD will take care of our people. FY 10–11 Target FY 10–11 Results
Training hours per employee 45 per year 58
Employee injury incident rate 5.2 Industry Average 3.1
Mandatory OSHA training requirements 100% 95%
Hours worked since last Lost Work Day 1,000,000 310,000
Lost Work Day Rate 5.2 2.6
Capital Improvement Program Overview
17
CIP Budget Request Summary
This is an update to the Fiscal Year 2010-12
two-year budget. In preparation for the 2011-12
update, the District’s Board of Directors reviewed
the proposed changes to the CIP to gain an
understanding of the impact from the CIP to
the current rate structure program.
The CIP includes three projects totaling $623 million
to upgrade the District’s treatment plants to meet
secondary treatment standards. Implementation
of secondary treatment standards is scheduled
to be completed by December 31, 2012.
In conjunction with preparation for the 2008-10
budget, the District staff conducted strategic
planning workshops with the Board of Directors
to layout a capital program to deliver the levels of
service desired by the Board of Directors. These
levels of service are included in the District’s Five-
Year Strategic Plan. No new CIP projects were added
as part of the District’s Five-Year Strategic Plan
update.
This budget update also includes the identification
of 2 new study projects. These study projects are
based on the District’s condition assessment
program and asset management planning. These CIP
studies increase the amount of the CIP by $0.37
million. However, these projects will be funded from
the future rehabilitation, renewal, and replacement
line item in OCSD’s existing budget and will not
impact OCSD user rates.
In addition, District staff has reviewed each ongoing
CIP project to ensure that the scope of the project is
appropriate, and that the cost estimates are accurate.
The validated CIP includes 95 large capital projects
and 50 special projects with a 20-year expenditure of
$1.815 billion. This total represents a $35.6 million
increase from the 2010-12 CIP estimate.
The proposed 2011-12 CIP budget is organized
by treatment and collection system processes and
areas. The funds requested for the current cash
flow budget total $129.2 million, a decrease of 28
percent from last year’s cash flow request of $179.6
million. The current year cash flow is part of an
overall total cost of $2.802 billion for active projects.
Following is a chart for the 2011-12 Proposed CIP
Cash Flows and the total Project Costs for all
proposed projects, by project phase, in millions:
Total
2011-12 Project
Current Status Cash Flow Costs
Future $0.0 $1,041.2
Planning 17.9 196.5
Design 15.9 373.5
Construction 93.3 1,174.8
Capital Equipment 2.1 16.0
Total $129.2 $2,802.0
There are currently 36 projects in the Planning Phase
with proposed capital outlay spending in 2011-12.
Two of the larger 2011-12 cash flow projects in the
Planning Phase are the Sludge Dewatering and Odor
Control at Plant 2 and the Cengen Emissions Control
Project with current year projected expenditures of
$2.94 million and $2.90 million, respectively. A total
of $134.1 million in capital outlay, currently listed
within the Planning Phase, is being projected for
future budgets based on the capital improvement
needs that are identified through the 2009 Facilities
Master Plan and the CIP Validation Study.
There are currently 14 projects in the Design Phase
with proposed capital outlay spending in 2011-12.
Two of the larger projects in the Design Phase are
the Sludge Thickening Dewatering and Odor Control
at Plant 1 Project and the Solids Thickening and
Processing Upgrades Project with projected current
year expenditures of $3.96 million and $3.17 million,
respectively.
There are currently 39 projects in the Construction
Phase with proposed capital outlay spending in
2011-12. The two most significant projects in the
construction phase are the Digester Rehabilitation at
Plant 1 and the New Secondary Treatment System at
Plant No. 1 with projected current year expenditures
of $16.58 million and $8.91 million, respectively.
Standard contingency factors have been applied
to improve budgeting. The rates of 20, 20, and
10 percent have been applied respectively to the
estimates made during the project development,
design, and construction project phases. This reflects
standard practice for estimating construction
project costs.
Following within the appendix are descriptions and
justifications for the capital improvement projects
which are new in this Fiscal Year 2011-12 budget
update. They give the reader a brief overview of each
project, the budget for the total project, and any
potential changes in the operational budget resulting
from the implementation of the project. For a
description of ongoing projects, see Section 8 of the
Fiscal Years 2010-11 and 2011-12 Budget.
CIP Overview
18
Each project in the CIP went through an extensive
validation and prioritization process. Projects have
been prioritized based on risk exposure if the project
was deferred. Projects that would present a higher
risk if they were delayed are given a higher priority.
The CIP budget process is continually improved
and further refined as the District improves the CIP
project management controls system. The Project
Management Controls System staff work with the
project managers and management throughout the
year to manage the scope, schedule, budget, risk
and other key project indicators for each project.
The information is collected monthly and compiled
in the OCSD Project Control System website.
This information is then readily available during
the budgeting process to minimize the time and
effort needed to prepare and update the CIP portion
of the overall budget.
The construction of Trickling Filters at Treatment Plant No. 2 was completed in December
2010, two months ahead of the EPA consent decree milestone due date.
Debt Financing Program
19
Debt Financing
Due to the magnitude of identified future annual
capital and operations and maintenance expenditures,
it is necessary that the District utilize debt financing to
meet its total obligations. Debt financing allows the
District to meet projected construction schedules
while achieving the lowest possible user fees, as well
as long-term stability in future sewer service fee rates.
Certificate of Participation (COP)
The primary debt mechanism used is Certificate
of Participation (COP). COPs are repayment
obligations based on a lease or installment sale
agreement. The COP structure was selected over
other structures because COPs are not viewed
as debt by the State of California, as the purchaser
does not actually receive a “bond,” but rather a
share in an installment sale arrangement where
the District serves as the purchaser. COPs can be
issued with fixed or variable interest rates.
Fixed-rate debt can be either traditional
or synthetic in form:
Fixed-Rate Debt traditionally has a final maturity
between 20 and 30 years from the date of
issuance. Generally, principal is amortized
annually. Principal maturing in early years
typically has a lower interest rate (“coupon”)
than later maturities. This structure typically
produces a level debt service.
Synthetic Fixed-Rate Debt: long-term, variable-
rate debt can be issued and then the interest
component can be swapped to a fixed rate.
This form of fixed-rate debt achieves a balance
between short and long-term interest costs
and is frequently a less expensive form of debt.
In some markets, this form of fixed-rate debt is
less expensive to issue than the more traditional
form of fixed-rate debt described above.
Variable-rate debt can also be traditional
or synthetic:
Variable-Rate Debt traditionally has either a long
or short nominal maturity, but the interest rate
resets periodically. Typically, the intervals for
interest rate resets are daily, weekly or monthly,
but any period is possible.
Synthetic Variable-Rate Debt as described
above for fixed-rate debt, variable-rate debt
can be created from a fixed-rate issue by means
of a floating-rate swap.
The maximum level of variable rate obligations
incurred by any District should not exceed the
level of invested reserves available to that District.
The District currently has outstanding synthetic
fixed-rate and fixed-rate COPs of $1.213 billion
and variable-rate COPs of $194.0 million, for a
ratio of 86:14.
The District Maintains
Its AAA Rating
The District’s bond rating is “AAA” from both Standard
& Poors and Fitch Ratings. An “AAA” Rating is the
highest for a government agency. In order to maintain
this rating, the District adheres to its 2001 Debt
Policy and coverage ratios requirements. This Board-
adopted policy serves as the agency’s guide in the
management of existing debt and in the issuance
of future debt.
Debt Ratios
The District does have contractual covenants
within the existing COP agreements which require
minimum coverage ratios of 1.25. The minimum
coverage ratio is the ratio of net annual revenues
available for debt service requirements to total annual
debt service requirements for all senior lien COP debt.
The coverage ratio for senior lien COP debt is being
proposed at 2.31 for Fiscal Year 2011-12.
Debt Financings
In Fiscal Year 2011-12, no new COP debt issuances
are being proposed. The proposed CIP budgeted
cash outlays of $129.2 million in this fiscal year would
be funded from reserves and other revenue sources.
Operating Expenses
20
Salaries, Wages &
Benefits – $97.6M
Salaries & Wages – This category includes salaries
for 637 full time equivalent (FTE) staff positions as
well as Directors’ pay. The vacancy factor applied for
the budget update was 3 percent based on trend
information. Provision has been made in these salary
projections in order to comply with the terms of the
most recently adopted MOUs.
Retirement – The District's employees are members
of the Orange County Employees' Retirement System
(OCERS). Information from OCERS indicates that an
increase in rates is expected. The employer’s
required contribution rate has been increased from
25.10 percent to 25.68 percent. In addition, the
District will pay 3.5 percent on behalf of each
employee.
Group Insurance – Includes the District’s share
(approximately $14,700 per employee) of employee
medical plan benefits for the indemnity plan, prepaid
HMO plans, the dental insurance plan, and
the life and disability insurance premiums. The
proposed budget includes a 12 percent increase
for the medical plans.
Operating Materials &
Supplies – $23.0M
Disinfection Chemicals – The largest cost related
to disinfection is for chemicals, specifically bleach.
Sodium Hypochlorite (Bleach) – Approximately 92
percent of the bleach is used for effluent
disinfection. The remaining bleach usage is for odor
control, disinfection of plant water, and the control of
filamentous organisms in activated sludge in the
secondary treatment process.
Bleach use is projected to decrease as new
secondary facilities become operational. The
decrease will occur because there will no longer be
primary bleach dosing at Plant 2 when the new
trickling filters are in operation. It is anticipated that
the District will use 4.5 million gallons of process
bleach in FY 2011-12 with an associated budget of
$3.2 million.
Summary of Operating & Maintenance Expenses
Category
2010-11
Approved
2011-12
Approved
2011-12
Updated
Proposed
Salaries and Benefits $94.9 $96.3 $97.6
Operating Materials & Supplies 24.6 25.3 23.0
Contractual Expenses 23.6 26.1 25.1
Repairs and Maintenance 11.1 11.1 12.0
Utilities 9.2 11.3 9.6
Professional Services 3.2 2.7 2.9
Other Materials, Supplies, Services 2.8 3.0 3.1
Self-Insurance Requirements 2.5 2.2 2.2
Training and Meetings 1.2 1.2 0.9
Research and Monitoring 1.1 1.0 1.1
Administrative Expenses 1.1 1.1 1.2
Printing and Publications 0.5 0.5 0.5
Capital Grants to Member Agencies 0.0 0.0 0.0
Cost Allocation (23.2) (23.6) (24.5)
Total Operating Expenses $152.6 $158.2 $154.7
2011–12 Budget Update
21
Chemical Coagulants – Anionic polymer is added
to the influent wastewater along with ferric chloride
via the physical/chemical treatment systems at both
plants to improve solids removal efficiencies in the
primary clarifier basins. Cationic polymer is added to
digested sludge prior to dewatering to cause the
sludge to coagulate to improve the sludge and water
separation process. Cationic polymer is also added to
the waste activated sludge dissolved air flotation
thickeners (DAFTs) to improve solids coagulation.
The usage costs for this group of chemicals is not
expected to increase as much as previously
estimated as overall chemical coagulants are being
proposed at $1.2 million less than previously
approved for 2011-12.
Odor Control Chemicals – The District uses
hydrogen peroxide and sodium hydroxide (caustic
soda) as the primary odor control chemicals within
the treatment plants; ferrous chloride, magnesium
hydroxide, calcium nitrate and caustic soda are the
primary odor and corrosion control chemicals used
within the collection system.
An increase of $200,000 is being proposed from
the previously approved $8.9 million 2011-12 budget
for odor control chemicals due to recent increases
in unit costs.
Contractual Services – $25.1M
The major component of this category is biosolids
removal and transport costs. Contracts have
been executed with firms for agricultural reuse
of residual solids. Since the closure of the Coyote
Canyon Landfill in 1990, no replacement site for
sludge disposal has yet been approved within
Orange County.
Total estimated biosolids production for Fiscal Year
2011-12 is 287,000 wet tons. The 2011-12 proposed
budget reflects a decrease of $1.6 million, based on
updated trend analysis of costs.
This category also includes appropriations for
grounds keeping services, janitorial services,
security services, toxic removal services, outside
laboratory services, trash pickup, plant site
sweeping, temporary help to level out periodic
increases in staff workload, a maintenance contract
for the Plant 2 oxygen generation plant, digester
cleaning and disposal services, line cleaning and
closed-circuit television (CCTV) services.
Repairs and
Maintenance – $12.0M
This item, which is for parts and services for repair
of plant and collection facilities and annual service
contracts, reflects an authorization to allow for
routine equipment maintenance and is expected
to increase by $900,000. Two large repairs include:
Plant 2 aeration deck crack repair budgeted at
$504,000 and replacement of flexible disks in the
Plant 1 aeration basin budgeted at $363,000.
Utilities – $9.6M
The overall cost for utilities is a significant
component of the operating budget. The overall
cost for utilities is anticipated to decrease by $1.7
million compared with the previously approved
2011-12 budget.
Natural Gas – Natural gas is purchased
to supplement the digester gas that is
used to run the central generation facilities.
The 2011-12 budget shows a decrease of
$700,000 reflecting lower levels of natural gas
needed because central generation engine
automation controls at Plant 2 allow the engines
to respond to lower digester gas production
without having to shut down an engine. Thus the
Plant 2 boilers can run on digester gas all the
time, reducing natural gas usage. Moreover,
given current market conditions projected natural
gas prices have been reduced significantly.
Electricity – Electricity is the largest utility cost
incurred by the District and is used to run the
plant processes. The 2011-12 budget reflects
a decrease of $1.0 million due to a lower
projected increase in Edison energy rates.
Nearly all the power required to operate
Plant No. 2 is generated by the District’s
Central Power Generation Facilities.
Operating Expenses
22
Professional Services – $2.9M
Professional Services includes General Counsel,
special labor counsel, legislative advocacy, audit
and miscellaneous accounting services, engineering,
and other technical consulting services.
Other Material, Supplies,
Services – $3.1M
This category of costs includes the in-lieu insurance
premium used to maintain the level of accumulated
reserves for the property and general liability self-
insurance programs. This in-lieu cost for 2011-12
is proposed at $1.1 million.
Expenses not chargeable to other categories,
such as freight and miscellaneous items, and
annual regulatory fees assessed by the SCAQMD,
are recorded with this category.
Insurance – $2.2M
The District’s outside excess general liability
insurance coverage is $30 million per occurrence
with a self-insurance retention of $250,000 and
$500,000 for EPLI.
The District’s property insurance coverage of
$1 billion for perils of fire and $300 million for perils
of flood is subject to a self-insurance retention of
5 percent per unit of insurance up to $250,000 for
fire and $100,000 for flood. The District is totally
self-insured for earthquake.
An appropriation of $1.1 million for in-lieu premium
contribution charged to operations is recommended
for the Property and General Liability Program.
This will serve to maintain the reserves balance.
Training and Meetings – $0.9M
Given current economic constraints, employee travel
is now subject to increased scrutiny. All meeting
request budgets have been reviewed for necessity,
duplication, and redundancy and have been limited to
a responsible level.
The 2011-12 proposed budget for training has been
decreased in line with recent trends as opposed to
the previous allocation based on a percentage of the
Regular Salaries budget. Training activities are
coordinated though the Human Resources
Department and the Risk Management Division.
This category includes ongoing technical and safety
training and materials for staff, required training for
computerized plant monitoring and control systems
and training to allow for a more adaptive and flexible
work force. Cost savings have been achieved in part
through increased use of on-line training.
Research and Monitoring – $1.1M
Overall, this category of costs is expected to increase
slightly over the next fiscal year. Research and
monitoring expenditures consist of contract services
to carry out the extensive ocean monitoring program
required by the EPA under provisions of the District’s
ocean discharge permit (NPDES) permit; air quality
monitoring costs; the District’s contribution
to the Southern California Coastal Water Research
Project (SCCWRP) being conducted under a joint
power agreement with other Southern California
municipal dischargers; and also provide for increased
operational and ocean research and evaluation to
develop optimum operating parameters in
treatment plants.
Administrative Expenses – $1.2M
These accounts include supplies, postage,
technical journals and publications, forms, small
office equipment, and small computer items that
cost less than $5,000 per item and exclude items
that are capitalized.
2011–12 Budget Update
23
Printing and Publication – $0.5M
The budget provides for in-house and outside
reproduction costs and reflects an expanded
management information system and administrative
requirements as well as a continuing demand by
the public and regulatory agencies for information.
The continuing effort of the Public Affairs Office to
improve public education programs about the
District’s activities is also reflected in the budget
for this line item. This group of accounts also
includes costs for photo processing,
advertisements, and notices.
To reduce inflow and infiltration to OCSD’s
sewage system, local sewers which are not owned
or maintained by OCSD must be repaired. The
Cooperative Projects Grant Program has funded
projects that are led by local agencies to reduce the
inflow and infiltration entering OCSD’s sewerage
system. Funds have been provided for an approved
project on a reimbursement basis after the project
has been completed. There is no longer a budget for
Cooperative Grants, however, if a member city or
agency presents a possible cost-savings project,
OCSD will evaluate the project as a budget cost-
savings measure and may participate accordingly.
Cost Allocation – ($24.5M)
This represents direct labor and benefit charge
outs and materials, supplies and services cost
allocation to the capital project where the related
work was performed.
The Nerissa is OCSD’s custom designed and built ocean
monitoring and research vessel. It holds and operates
specialized ocean sampling equipment that enables OCSD
to conduct core and regional monitoring and special
studies along the coastline.
Departments
Summary
24
Expenses by Department (in millions)
Staffing by Department (FTEs)
Department
2010-11
Budget
2011-12
Originally
Proposed
Percent
Change
2011-12
Updated
Proposed
Percent
Change
Administration Units:
Office of the General Manager $3.9 $3.9 0.0% $3.9 0.0%
* Human Resources 0.0 0.0 N/A 4.0 N/A
Administrative Services 21.8 22.2 1.8% 21.2 (4.5%)
Sub-Total $25.7 $26.1 1.6% $29.1 11.5%
Operating Units:
* Facilities Support Services 0.0 0.0 N/A 25.2 N/A
Technical Services 19.3 19.3 0.0% 0.0 (100.0%)
Engineering 4.9 4.8 (2.0%) 8.0 66.7%
Operations & Maintenance 100.1 105.9 5.8% 90.2 (14.8%)
Sub-Total $124.3 $130.0 4.6% $123.4 (5.1%)
Total $150.0 $156.1 4.1% $152.5 (2.3%)
Less: Operating Revenue (16.5) (15.0) (9.1%) (15.0) 0.0%
Grand Total $133.5 $141.1 5.7% $137.5 (2.6%)
Department
2010-11
Budget
2011-12
Originally
Proposed
Percent
Change
2011-12
Updated
Proposed
Percent
Change
Administration Units:
Office of the General Manager 15.00 15.00 0.0% 13.00 (13.3%)
* Human Resources 0.00 0.00 N/A 20.00 N/A
Administrative Services 111.75 111.75 0.0% 110.75 (0.9%)
Sub-Total 126.75 126.75 0.0% 143.75 13.4%
Operating Units:
* Facilities Support Services 0.00 0.00 N/A 83.75 N/A
Technical Services 102.50 102.50 0.0% 0.00 (100.0%)
Engineering 120.50 120.50 0.0% 128.50 6.6%
Operations & Maintenance 291.25 291.25 0.0% 281.00 (3.5%)
Sub-Total 514.25 514.25 0.0% 493.25 -4.1%
Total FTEs 641.00 641.00 0.0% 637.00 (0.6%)
* New departments created as part of the Beyond 2012 staffing reorganization.
2011–12 Budget Update
25
Administration Units
Office of the General Manager
Budget $3.9M – Staffing 13 FTEs
The Office of the General Manager provides general
oversight of all Sanitation District operations and
incorporates functions in the areas of Public Affairs
and Board Services. This office reports directly to the
Board of Directors. The budget reflects the transfer
of 2.0 unfunded FTE Management Discretion
positions to Human Resources.
Human Resources
Budget $4.0M – Staffing 20.0 FTEs
The Human Resources Department works with
management and employees to ensure an effective
and productive employment relationship. This newly
created department reports directly to the Assistant
General Manager. The budget includes 2 District-
wide pooled vacant positions as well as 3 unfunded
Management Discretion positions.
Administrative Services
Budget $21.2M – Staffing 110.75 FTEs
The Administrative Services Department maintains
financial oversight and administration of all District
funds and accounts and is responsible for contract
administration and procurement, oversees all District
computer, networking and customer support issues,
and identifies and manages potential risk to the
organization to create a safe, healthy and secure
environment for staff, contractors, and visitors. The
budget reflects a reduction of 1 FTE due to the net
impact of a transfer of 17 FTEs to the new Human
Resources Department along with the transfer of 16
FTEs from other departments.
* FTE = Full-Time Equivalent Position
Operating Units
Facilities Support Services
Budget $25.2M – Staffing 83.75 FTEs
The new Facilities Support Services Department
provides fleet and heavy equipment services for
the District, handles non-public works construction
support and projects, and operates and maintains
the regional collection system facilities providing
reliable collection and transportation of wastewater,
and efficient, safe operation and maintenance of the
system in the 463 square mile area. The budget
includes 83.75 FTEs transferred from various other
departments, primarily from Operations and
Maintenance.
Engineering
Budget $8.0M – Staffing 128.5 FTEs
The Engineering Department is responsible for
the planning, design and construction of the
District’s capital improvement program as well as
environmental compliance and asset management.
The budget reflects reduced use of Integrated
Program Management Consultants (IPMC) to
supplement District resources in managing the
CIP and a net increase of 8 FTEs due the transfer of
the Environmental Compliance Division from the
Technical Services Department along with the
transfer of a large portion of the Asset Management
staff to the Operations and Maintenance Department
and the transfer of the Facilities Engineering Division
to Facilities Support Services.
Operations and Maintenance
Budget $90.2M – Staffing 281.0 FTEs
The Operations and Maintenance Department
is responsible for operation of the District’s two
wastewater treatment plants as well as the
environmental laboratory and ocean monitoring. The
budget reflects a reduction of 10.25 FTEs due to the
net impact of a District-wide reorganization that
included the reduction of three divisions in this
department with much of their staff transferred to
the Facilities Support Services Department and the
transfer of the Environmental Laboratory and Ocean
Monitoring Division from the Technical Services
Department.
26
Service Description
The mission of the Office of the General
Manager is to work with the Board to establish
standards, policies and procedures, and the
overall goals and Strategic Plan of the Sanitation
District. The Office of the General Manager
reports the progress in meeting the established
goals to support OCSD’s mission, and provides
general oversight of operations. The office
reports directly to the Board of Directors.
In addition to the line departments, this
department oversees District-wide functions
in the areas of Public Affairs and Board Services.
Public Affairs provides services and
implements programs to meet the
communications needs of OCSD’s internal
and external audiences. The division plans and
implements media relations, website content,
community relations, community education
and outreach, employee newsletter, intranet
development, corporate identity program,
collateral material and graphics development,
presentation development, and crisis
communications. The Public Affairs Division
also handles state and federal legislative
advocacy, grants and appropriations, and
intergovernmental relations. The state and
federal legislative advocates are managed
by this division.
Board Services includes the Clerk of the Board
office. Services include supporting the Board of
Directors, acting as filing officer for Statement
of Economic Interests, receiving and processing
summons and complaints filed against OCSD.
Office of the
General Manager
Operating Expense
General
Counsel
Office
Board of
Directors
General
Manager
–General
Management
Administration
–Board Services
–Public Affairs
Human
Resources
Administrative
Services
Facilities
Support
Services
Engineering
Operations &
Maintenance
General
Management
Administration
2011-12 2011-12
2010-11 Originally Updated
Category Budget Proposed Proposed
Personnel 2,317,600$ 2,345,900$ 2,347,800$
Chemicals & Other Supplies 305,330 284,380 275,380
Professional / Contractual Services 405,000 331,000 355,000
Research & Monitoring 0 0 0
Repairs & Maintenance 1,500 1,500 1,500
Utilities 117,000 122,000 122,000
Other 833,520 903,520 902,020
Cost Allocation (81,170) (81,170) (70,850)
Total 3,898,780$ 3,907,130$ 3,932,850$
Office of the General Manager
2011–12 Budget Update
27
Budget Overview
In July 2009, the General Manager combined the Public Information Office
with Legislative Affairs to form the Public Affairs Division. This year, the
Human Resources Division became a department reporting directly to the
Assistant General Manager. The budget for the General Manager’s Office for
Fiscal Year 2011-12 will remain essentially flat. The General Manager’s Office
overall staffing has been decreased by 2 full-time equivalent unfunded
Management Discretion positions which have been moved to Human
Resources.
Performance Objectives / Measures
Maintain OCSD staffing at or below 637.0 FTEs.
Maintain 100 percent compliance with terms and conditions
of our permits and local, state and federal regulations.
Deliver 80+ percent of each fiscal year’s CIP budget principles.
Update key messages and collateral materials used to educate the
public about how OCSD protects public health and the environment.
Establish key legislative priorities and keep the Board and senior
management apprised of matters in Sacramento and Washington, D.C.
Provide accurate and timely board/committee agenda packages
to the Board of Directors.
Update performance dashboard quarterly.
Continue the “Leading OCSD” Program to foster leadership and
change at all levels.
Staffing Trends
3
3
2222
2003 2004 2005 2006 2007 2008
Authorized FTE Positions
Managers 3.00
Supervisors / Professionals 7.00
Administrative / Clerical 3.00
Other 0.00
Total 13.00
Through the Board’s leadership,
OCSD updated its Five-Year Strategic
Plan in November 2010.
21.75 21.75
15.00 15.00 13.00
07-08 08-09 09-10 10-11 11-12
Staffing Trends
28
Service Description
The Human Resources Department’s (HRD)
mission is to work with management and
employees to ensure an effective and productive
employment relationship. A major goal of the
HRD operation is to support a workplace
environment grounded in fair and equitable
employment decisions and practices.
HRD is responsible for all aspects of human
resources management and labor/employee
relations. HRD serves as the in-house advisor to
the General Manager, executive staff, District
departments, and line staff. Delivering services
with a high-level of customer satisfaction is a key
objective. HRD reports directly to the Assistant
General Manager in charge of administrative
operations.
HRD administration oversees the following
operating sections to support the major goal of
equal employment opportunity for all persons on
the basis of job-related merit: Human
Resources; Labor & Employee Relations; and,
Employee Development & Training.
Human Resources (HR) activities support
classification and compensation; employee
benefits and wellness programs; staffing
(recruitment, selection, and employment); and,
employee recognition and rewards.
Labor & Employee Relations (LER) activities
support the employment relationship for
management and employees.
Employee Development & Training (EDT)
activities support a higher performing
organization while helping each operating unit
and the employees doing the work within them
to reach their full potential.
Operating Expense
Human Resources
Department
2011-12 2011-12
2010-11 Originally Updated
Category Budget Proposed Proposed
Personnel $0 $0 3,633,270$
Chemicals & Other Supplies 0 0 588,050
Professional / Contractual Services 0 0 537,700
Research & Monitoring 0 0 0
Repairs & Maintenance 0 0 0
Utilities 0 0 0
Other 0 0 82,890
Cost Allocation 0 0 (850,800)
Total $0 $0 3,991,110$
Human
Resources
Administrative
Services
Facilities
Support
Services
Engineering
Operations &
Maintenance
General
Counsel
Office
Board of
Directors
General
Manager
General
Management
Administration
–Human Resources
Administration
–Labor & Employee
Relations
–Employee
Development &
Training
Human Resources Department
2011-12 Budget Update
29
Budget Overview
Human Resources became a separate department during Fiscal Year
2010-11 so there is no budget history available for comparison at this time.
The 20 full-time equivalent positions authorized in this department include
15 Human Resources staff positions, 2 District-wide pooled vacant positions,
and 3 unfunded Management Discretion positions. The department budget
for Fiscal Year 2011-12 is approximately $4.0 million.
Performance Objectives / Measures
Ensure the Department’s planned budget is managed to within 90 to
100% of the approved amount.
Enhance HR Technologies by June 2012.
Continuous development of leadership and succession management.
Continuous development of the Performance Management program.
Support the training level of service of 45 hours per employee.
Implement staffing procedures through June 2012.
Ensure the department’s strategic plan deliverables are
completed by June 2012.
Authorized FTE Positions
Managers 1.00
Supervisors / Professionals 12.00
Administrative / Clerical 3.00
Operations & Maintenance 1.00
Other 3.00
Total 20.00
20.00
07-08 08-09 09-10 10-11 11-12
Staffing Trends
40
150
200
0 2,000 4,000 6,000 8,000 10,000
Regulatory
Webinar
CIP
Conference
Legal
Technology
Administrative
Technical
Safety
Hours of Training
The Human Resources Department provides nearly
25,000 hours of employee training annually.
30
Service Description
The Administrative Services Department
oversees all of OCSD’s finance, contracts/
purchasing, risk management, and information
technology activities, including
both day-to-day operations and strategic
planning. The department serves as a liaison
to Executive Management, the Board of
Directors, and other departments of OCSD.
The department includes four divisions:
Financial Management; Contracts, Purchasing,
and Materials Management; Information
Technology; and Risk Management.
Administrative Services Management
provides leadership and oversight to all
Administrative Services divisions.
Financial Management oversees and
administers all OCSD’s funds and accounts.
Programs include treasury management and
debt financing, accounts receivable and payable,
user fees, payroll, accounting for fixed assets,
coordinating the capital and operating budget
process, and risk management.
Contracts, Purchasing, & Materials
Management is responsible for contract
administration and procurement for all
departments. Additionally, this division
manages the OCSD’s warehouses, receiving
and maintaining inventory, and distributing
supplies, materials, and equipment.
Information Technology is responsible for
customer support related information
technology assets and services, networking and
infrastructure, telecommunications service
operation and maintenance, network and
programming, solutions and application support.
Operating Expense
Administrative Services
Department
–Administrative
Services
–Financial
Management
–Contracts,
Purchasing &
Materials
Management
–Information
Technology
–Risk
Management
General
Counsel
Office
Board of
Directors
General
Manager
Human
Resources
Administrative
Services
Facilities
Support
Services
Engineering
Operations &
Maintenance
General
Management
Administration
2011-12 2011-12
2010-11 Originally Updated
Category Budget Proposed Proposed
Personnel 17,205,870$ 17,444,370$ 16,459,000$
Chemicals & Other Supplies 2,189,730 2,202,320 1,257,430
Professional / Contractual Services 2,117,040 2,084,870 2,002,890
Research & Monitoring 0 0 0
Repairs & Maintenance 1,285,270 1,295,310 1,281,270
Utilities 300,000 300,000 300,000
Other 1,109,310 1,253,780 1,171,060
Cost Allocation (2,357,940) (2,357,940) (1,248,940)
Total 21,849,280$ 22,222,710$ 21,222,710$
Administrative Services Department
2011-12 Budget Update
31
Risk Management identifies and manages potential risk to the organization
and provides solutions for mitigation or reducing the risk to acceptable levels.
The Risk Management Division works to create a safe, healthy, and secure
environment for District staff, contractors, and visitors. Additionally, it
provides the support for management and employees to take ownership of
identifying and controlling risk and cost-effectively addressing safety, health
and security issues.
Additionally, in support of District-wide financial and operational activities, a
small Management Services Team has been created within the Administrative
Services Department. This team provides District-wide support in the areas of
business efficiency, budgeting, departmental support, strategic planning,
auditing and special projects.
Budget Overview
The Fiscal Year 2011-12 proposed Administrative Service Department budget
reflects a 4.5 percent decrease compared with the originally proposed budget
for the year. The decrease is largely the result of the Beyond 2012
reorganization where Human Resources was moved out of Administrative
Services and made into a separate department. This reduction was partially
offset by the creation of the Risk Management Division and by transfers of
staff to the Information Technology Division. Although there was only a net
reduction of 1.0 FTE, there was a significant decrease in personnel costs as
District-wide ARBA, net pension, and net other postemployment benefits are
all budgeted in Human Resources.
Performance Objectives / Measures
Submit the annual sewer service fee property parcel database to the
County in time for placement on annual secured property tax bills.
Process all approved sewer service fee refund requests within 45 days,
90 percent of the time.
All debt service payments will be paid electronically, on the actual due
dates, and error free 100 percent of the time.
Continue the cycle count program and maintain a 97 percent accuracy
rate or better.
Successfully implement a Professional Design Service Agreement (PDSA)
Contracts Program by end of Fiscal Year 2010-11.
Successfully revise Delegation of Authority and have approved by all
Committees and Board.
Successfully complete a Chemical Sustainability Study.
100 percent completion of all compliance testing.
Continue completion of the Information Technology Strategic Plan (ITSP)
Planned Annual Objectives.
Ascertain the measurement of ITSP target achievement based on the
importance and completion of goals supporting the Levels of Service
(LOS) in the OCSD Strategic Plan.
Maintain an average uptime of 90 percent for critical applications.
Obtain the Voluntary Protection Program (VPP) designation.
Staffing Trends
515150
45
4039
2003 2004 2005 2006 2007 2008
Authorized FTE Positions
Managers 8.00
Supervisors / Professionals 62.75
Administrative / Clerical 32.00
Technical 2.00
Operations & Maintenance 6.00
Total 110.75
106.00 104.50
108.75 111.75 110.75
07-08 08-09 09-10 10-11 11-12
Staffing Trends
OCSD was awarded the 2010 AEP –
Achievement of Excellence in Procurement
Award by the California Association of
Public Procurement Officials (CAPPO).
This award demonstrates our commitment
to procurement innovation, customer
service, and best use of available
technology.
32
Service Description
The Facilities Support Services Department
consists of four divisions:
Facilities Support Services Administration
provides leadership, support, and management
oversight for the Department in order to
accomplish OCSD’s Strategic Plan and our
annual goals.
Equipment / Rebuild provides fleet and heavy
equipment services and management,
equipment rebuild and fabrication, and
machining/fabrication/welding services to all
OCSD staff.
Facilities Engineering provides engineering,
technical support, and contracted services
support in order to deliver timely, non-public
works construction support and projects for the
agency.
Collection Facilities operates and maintains
the regional facilities which include gravity
sewers and pumping facilities; provides services
to minimize odor and corrosion impacts within
the facilities; and works with industrial and
commercial dischargers to inspect, monitor and
sample within the collection system to assure
regulatory compliance.
Facilities Support Services
Department
Operating Expense
–Facilities
Support Services
Administration
–Equipment /
Rebuild
–Facilities
Engineering
–Collection
Facilities
General
Counsel
Office
Board of
Directors
General
Manager
Human
Resources
Administrative
Services
Facilities
Support
Services
Engineering
Operations &
Maintenance
General
Management
Administration
2011-12 2011-12
2010-11 Originally Updated
Category Budget Proposed Proposed
Personnel $0 $0 11,820,800$
Chemicals & Other Supplies 0 0 7,713,940
Professional / Contractual Services 0 0 4,261,660
Research & Monitoring 0 0 0
Repairs & Maintenance 0 0 3,558,650
Utilities 0 0 593,300
Other 0 0 67,930
Cost Allocation 0 0 (2,801,780)
Total $0 $0 25,214,500$
Facilities Support Services Department
2011-12 Budget Update
33
Budget Overview
In August of Fiscal Year 2010-11, the Facilities Support Services
Department was formed as part of the Beyond 2012 reorganizational
changes. Additional changes were made in April 2011 to further align
roles and responsibilities with the Beyond 2012 Plan’s recommendations.
The Facilities Support Services Department is comprised of staff from
Operations and Maintenance, Engineering, and Technical Services. We
form a diverse, but unified team of specialists to adapt and serve the
District’s changing needs.
Performance Objectives / Measures
Maintain 100% compliance with all regulatory permits related to our
business.
Manage Divisional expenditures within 96% - 100% of approved budget
and related risk levels.
Maintain 100% compliance with Board agreed Levels of Service
supported by the FSS Department.
Complete more than 95% of all mandatory safety training for the Fiscal
Year.
Meet the Beyond 2012 Plan’s implementation milestones.
Maintain a safe workplace and complete quarterly inspections.
Authorized FTE Positions
Managers 4.00
Supervisors / Professionals 23.00
Administrative / Clerical 6.50
Operations & Maintenance 36.00
Technical 13.00
Interns 1.25
Total 83.75
83.75
07-08 08-09 09-10 10-11 11-12
Staffing Trends
OCSD routinely inspects the facilities
of industrial wastewater dischargers.
34
Service Description
The Engineering Department is responsible
for the OCSD Capital Improvement Program,
Environmental Compliance, and Asset
Management. The Engineering Department is
comprised of six divisions:
Engineering Administration provides
management to all Engineering Divisions.
Planning is responsible for master planning the
OCSD Capital Improvement Program, and
California Environmental Quality Act review.
In addition, this division is responsible for the
OCSD Corrosion Management Program, the
Research Program, annexations, connection
permitting, and inter-agency agreements.
Project Management Office is responsible for
the delivery of capital projects from the
preliminary design stage through the closeout of
construction.
Engineering and Construction provides
design and construction engineering, quality
control inspection, and other technical support
for design and construction projects.
Asset Management is responsible for
assessment of all of OCSD’s assets and systems
and for planning the rehabilitation and
replacement of facilities to ensure their ability to
deliver the required level of service with an
acceptable level of risk at the optimal lifecycle
cost.
Operating Expense
Engineering
Department
–Engineering
Administration
–Planning
–Project
Management
Office
–Engineering &
Construction
–Asset
Management
–Environmental
Compliance
General
Counsel
Office
Board of
Directors
General
Manager
Human
Resources
Administrative
Services
Facilities
Support
Services
Engineering
Operations &
Maintenance
General
Management
Administration
2011-12 2011-12
2010-11 Originally Updated
Category Budget Proposed Proposed
Personnel 19,437,400$ 19,709,900$ 21,710,500$
Chemicals & Other Supplies 293,730 282,890 460,390
Professional / Contractual Services 220,000 205,000 327,000
Research & Monitoring 0 0 145,000
Repairs & Maintenance 175,050 175,050 3,550
Utilities 0 0 0
Other 20,320 20,320 618,310
Cost Allocation (15,242,750) (15,586,850) (15,236,050)
Total 4,903,750$ 4,806,310$ 8,028,700$
Engineering Department
2011–12 Budget Update
35
Environmental Compliance is responsible for securing and maintaining
permits from regulatory agencies for activities that may impact air, land,
wastewater, and endangered and threatened species; implementing the
pretreatment program; supporting biosolids and wastewater reuse;
evaluating plant processes and compliance activities; evaluating and
proactively developing new regulations; and building positive relationships
with the regulatory community, agency associations and the public.
Budget Overview
During Fiscal Year 2010-11 (as part of the District-wide reorganization), the
Engineering Department acquired the Environmental Compliance Division
from the Technical Services Department. In addition, the majority of the
Asset Management Division was moved to the O&M Department and the
Facilities Engineering Division was moved to the new Facilities Support
Services Department. In the proposed Fiscal Year 2011-12 budget, 33
Environmental Compliance staff have been reassigned to Engineering, the
Asset Management Division was reduced to six staff and the Planning
Division acquired three new staff to work on corrosion and research issues.
Performance Objectives / Measures
Expend minimum 90 percent of project annual Capital Improvement
Program cash flows for Fiscal Year 2011-12.
Ensure that reporting division’s expenditures are managed to less than
100 percent of proposed budgets.
Ensure that reporting divisions achieve 90 percent of individual
performance objectives.
Staffing Trends
989899
95
8079
2003 2004 2005 2006 2007 2008
Authorized FTE Positions
Managers 6.00
Supervisors / Professionals 87.00
Administrative / Clerical 34.00
Interns 1.50
Operations & Maintenance 0.00
Total 128.50
104.50 108.50 105.50
120.50
128.50
07-08 08-09 09-10 10-11 11-12
Staffing Trends
CIP Expenditures
Replacement/
Rehabilitation
$89M
68%
Support
$10M
8%
Additional Capacity
$10M
8%
Improved Treatment
$20M
16%
In 2011-12, the Engineering Department
will be responsible for $129 million in
capital expenditures.
36
Service Description
The Operations and Maintenance Department is
responsible for treating wastewater, reusing or
disposing of the treated wastewater and all
residuals, and providing care to all facilities. The
O&M Department consists of six divisions:
Operations and Maintenance
Administration provides leadership
and oversight to all Operations and
Maintenance divisions.
Plant No. 1 and Plant No. 2 Operations
are responsible for the daily management of the
wastewater treatment processes, sludge and
biosolids treatment and loading processes, and
odor and air quality control processes. Activities
also include ensuring compliance with all
regulatory permits, support of the Capital
Improvement Program, and coordination of
construction and maintenance work. Plant 1
Operations also ensures the delivery of
specification water to the Ground Water
Replenishment System.
Mechanical and Reliability Maintenance
is responsible for maintaining and repairing all
mechanical equipment in the treatment plants;
facilities maintenance, and for all OCSD
maintenance planning and equipment reliability
maintenance programs. The division provides
appropriate maintenance support for wastewater
treatment processes in a safe, efficient, and
effective manner so that OCSD can meet all
discharge requirements.
Operations and Maintenance
Department
Operating Expense
–Operations &
Maintenance
Administration
–Plant No. 1
Operations
–Plant No. 2
Operations
–Mechanical
& Reliability
Maintenance
–Instrumentation
& Electrical
Maintenance
–Environmental
Laboratory
& Ocean
Monitoring
General
Counsel
Office
Board of
Directors
General
Manager
Human
Resources
Administrative
Services
Facilities
Support
Services
Engineering
Operations &
Maintenance
General
Management
Administration
2011-12 2011-12
2010-11 Originally Updated
Category Budget Proposed Proposed
Personnel 40,751,300$ 41,354,700$ 41,643,200$
Chemicals & Other Supplies 23,714,740 24,474,220 15,338,300
Professional / Contractual Services 23,258,710 25,575,310 20,477,900
Research & Monitoring 0 0 910,100
Repairs & Maintenance 9,311,900 9,343,810 7,166,250
Utilities 8,459,720 10,531,860 8,631,000
Other 96,690 99,890 292,100
Cost Allocation (5,486,120) (5,486,120) (4,303,180)
Total 100,106,940$ 105,893,670$ 90,155,670$
Operations & Maintenance Department
2011–12 Budget Update
37
Service Description (continued)
Instrumentation and Electrical Maintenance is responsible for
maintaining all instrumentation, electrical, HVAC equipment and systems in
the treatment plants, pump stations, support and office buildings; providing
reliable power by operating the two generating facilities and back-up
generator power sources, repairing all systems, and supporting the CIP.
Environmental Laboratory and Ocean Monitoring performs analytical
procedures, monitoring method development, data analysis and reporting
for a broad range of programs and sample types, including wastewater
treatment streams, industrial inputs, offshore and nearshore receiving
waters, final effluent and air in order to demonstrate the effectiveness of
wastewater treatment processes, the industrial source control program,
compliance with water and air regulations and protection of the receiving
water environment.
Budget Overview
The Fiscal Year 2011-12 budget for the Department reflects a $15.7 million
decrease from the originally proposed budget for this year. This decrease is
primarily related to responsibilities transferred to the new Facilities Support
Services Department. Despite the transfer of the Environmental Laboratory
and Ocean Monitoring Division from the Technical Services Department,
there was a net reduction of 10.25 FTEs in Operations and Maintenance due
to the reorganization.
Other significant factors include:
Fiscal Year 2011-12 budgets are linked to meeting all regulatory,
Consent Decree, and Level of Service needs for the facilities and
systems managed by the O&M staff. They include: providing treated
water to OCWD for GWR System needs; ramping-up to full secondary
treatment by December 31, 2012; and minimizing offsite odor impacts
from Plants No. 1 and 2 in conformance with new Dilution to Threshold
(D/T) criteria.
The commissioning of two secondary treatment processes and a new
headworks will drive the largest changes in this year’s budget including
the following:
Significant reductions in bleach usage with the discontinuation
of disinfecting primary influent at Plant No. 2.
Increases in polymer usage as a result of additional secondary
solids being generated and bleach being removed from primary
influent stream
Significant increases in electricity usage resulting from addition
of energy intensive equipment
Increase in biosolids offsite management costs because of the
additional secondary solids that will be generated
Authorized FTE Positions
Manager 5.00
Supervisors / Professionals 89.00
Administrative / Clerical 6.75
Technical 2.00
Interns 1.25
Operations & Maintenance 177.00
Total 281.00
Disinfection chemical tanks at Plant No. 2.
292.75
299.25 306.25
291.25
281.00
07-08 08-09 09-10 10-11 11-12
Staffing Trends
38
Maintenance repair costs will increase this budget, and likely in future
budgets as a result of improved asset planning that has identified
several areas of the treatment plants that require maintenance
investment in order to avoid significant repair or replacement costs, and
increased maintenance needs in our older facilities where systems are
at or beyond their life cycle.
Performance Objectives / Measures
Achieve 100 percent compliance with water, solids, air, and
energy permits.
Achieve a compliance level of 80 percent to 100 percent of the
Levels of Service (LOS) targets consistent with resource availability.
Manage O&M expenditures to within 96 to 100 percent of
approved budget.
Operations and Maintenance
Department (continued)
A - 1
Appendix
Cash Flow Projection
A – 2
Orange County Sanitation District Consolidated Cash Flow Projections
Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary
Ref Description 11-12 12-13 13-14 14-15 15-16 16-17
Revenues:
1 General User Fees 248,519,000 276,909,000 299,500,000 321,029,000 344,157,000 362,217,000
2 Permitted User Fees 11,396,000 12,548,000 13,426,000 14,366,000 15,372,000 16,141,000
3 IRWD Assessments 13,973,440 14,625,070 15,584,880 15,444,790 16,232,000 11,493,130
4 SAWPA Assessments 4,402,600 4,514,340 4,628,230 4,745,280 4,865,490 4,988,870
5 Property Taxes (Flat in short term) 63,371,000 63,371,000 66,540,000 69,867,000 73,360,000 77,028,000
6 New COP Issues - 120,000,000 - - - 45,000,000
7 Interest Revenues 11,687,000 12,048,000 15,168,000 17,104,000 16,065,000 15,694,000
8 Capital Facilities Capacity Charges 6,805,000 7,289,000 7,969,000 8,701,000 9,488,000 10,164,000
9 Other Revenues 11,949,950 3,794,200 27,216,200 3,876,200 3,919,200 18,343,200
10 Revenues 372,103,990 515,098,610 450,032,310 455,133,270 483,458,690 561,069,200
Requirements:
11 Oper & Mtce Exp (7.0% yr) 152,545,540 169,516,000 179,046,250 189,397,000 202,039,000 221,987,000
12 Capital Improvement Program 129,169,900 169,002,000 212,313,000 173,426,000 214,284,000 130,646,000
13 Repl, Rehab & Refurb - 1,000,000 1,000,000 2,500,000 21,932,000 67,385,000
14 COP Service (5.0%, 30 yrs) 92,162,910 96,149,260 113,782,980 100,571,240 100,471,650 106,541,240
15 Other Requirements 31,846,200 9,406,200 2,156,200 2,156,200 2,156,200 2,156,200
16 Requirements 405,724,550 445,073,460 508,298,430 468,050,440 540,882,850 528,715,440
17 Revenues-Requirements (33,620,560) 70,025,150 (58,266,120) (12,917,170) (57,424,160) 32,353,760
Accumulated Funds:
18 Beginning of Year 607,016,640 573,396,080 643,421,230 585,155,110 572,237,940 514,813,780
19 End of Year 573,396,080 643,421,230 585,155,110 572,237,940 514,813,780 547,167,540
20 Consolidated Reserve Policy 485,509,910 510,199,260 527,772,980 518,239,240 517,988,650 533,907,240
21 Over (Under) Reserve Policy 87,886,170 133,221,970 57,382,130 53,998,700 (3,174,870) 13,260,300
Sewer Service User Fees:
22 Avg SFR Annual User Fee $267.00 $294.00 $314.58 $336.60 $360.16 $378.17
23 Percentage Change 9.43% 10.11%7.00%7.00%7.00%5.00%
24 Equivalent Dwelling Units 926,990 929,401 931,910 934,519 937,229 939,994
25 SFR Connection Fee $3,424 $3,595 $3,775 $3,964 $4,162 $4,370
26 Outstanding COPs $1,378,157,000 $1,467,848,000 $1,420,435,000 $1,384,924,000 $1,348,023,000 $1,350,021,000
Reserve Policy
27 50% Next Year Operating 76,273,000 84,758,000 89,523,000 94,699,000 101,020,000 110,994,000
28 10% Next Year Operating 15,255,000 16,952,000 17,905,000 18,940,000 20,204,000 22,199,000
29 100% Next Year AUG COP Svc. 92,162,910 96,149,260 113,782,980 100,571,240 100,471,650 106,541,240
30 50% average CIP bal to 2020 88,421,000 88,801,000 86,569,000 86,369,000 81,080,000 77,492,000
31 Short term CIP, GWRS - - - - - -
32 DSR @ 10% Outstanding COPs 137,816,000 146,785,000 142,044,000 138,492,000 134,802,000 135,002,000
33 SFI @ $57mm INPUT 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000
34 Repl & Refurb @ 2%/yr 58,582,000 59,754,000 60,949,000 62,168,000 63,411,000 64,679,000
35 Total 525,509,910 550,199,260 567,772,980 558,239,240 557,988,650 573,907,240
COP Ratios
36 Sr Lien Coverge, Min 1.25 2.31 2.27 2.31 2.56 2.71 2.66
2011-12 Budget Update
A - 3
Orange County Sanitation District
Consolidated Cash Flow Projections
Preliminary Preliminary Preliminary Preliminary 10-Year
Description 17-18 18-19 19-20 20-21 Total
Revenues:
General User Fees 377,680,000 393,807,000 410,626,000 428,024,000 3,462,468,000
Permitted User Fees 16,787,000 17,528,000 18,302,000 19,110,000 154,976,000
IRWD Assessments 7,131,850 7,043,300 7,830,140 9,062,110 118,420,710
SAWPA Assessments 5,115,420 5,245,160 5,378,090 5,514,210 49,397,690
Property Taxes (Flat in short term) 80,879,000 84,923,000 89,169,000 93,627,000 762,135,000
New COP Issues - - - - 165,000,000
Interest Revenues 15,994,000 18,575,000 22,022,000 21,919,000 166,276,000
Capital Facilities Capacity Charges 10,885,000 10,874,000 11,452,000 12,060,000 95,687,000
Other Revenues 4,007,200 4,052,200 12,479,200 4,147,200 93,784,750
Revenues 518,479,470 542,047,660 577,258,430 593,463,520 5,068,145,150
Requirements:
Oper & Mtce Exp (7.0% yr) 235,185,000 251,853,000 264,842,000 283,058,000 2,149,468,790
Capital Improvement Program 95,990,000 80,204,000 42,595,000 50,949,000 1,298,578,900
Repl, Rehab & Refurb 93,209,000 94,109,000 130,317,000 187,551,000 599,003,000
COP Service (5.0%, 30 yrs) 104,010,420 103,942,793 103,974,143 108,389,590 1,029,996,227
Other Requirements 2,156,200 2,156,200 2,156,200 2,156,200 58,502,000
Requirements 530,550,620 532,264,993 543,884,343 632,103,790 5,135,548,917
Revenues-Requirements (12,071,150) 9,782,667 33,374,087 (38,640,270) (67,403,767)
Accumulated Funds:
Beginning of Year 547,167,540 535,096,390 544,879,057 578,253,144 534,342,970
End of Year 535,096,390 544,879,057 578,253,144 539,612,873 578,253,144
Consolidated Reserve Policy 532,251,420 534,615,793 530,411,143 482,427,591 $530,411,143
Over (Under) Reserve Policy 2,844,970 10,263,264 47,842,000 57,185,282
Sewer Service User Fees:
Avg SFR Annual User Fee $393.30 $409.03 $425.39 $442.41
Percentage Change 4.00%4.00%4.00%4.00%
Equivalent Dwelling Units 942,814 945,643 948,480 951,325
SFR Connection Fee $4,589 $4,818 $5,059 $5,312
Outstanding COPs $1,309,396,000 $1,267,000,000 $1,222,685,000 $1,171,917,000
Reserve Policy
50% Next Year Operating 117,593,000 125,927,000 132,421,000 141,529,000
10% Next Year Operating 23,519,000 25,185,000 26,484,000 28,306,000
100% Next Year AUG COP Svc.104,010,420 103,942,793 103,974,143 108,389,590
50% average CIP bal to 2020 73,216,000 68,569,000 59,625,000 -
Short term CIP, GWRS - - - -
DSR @ 10% Outstanding COPs 130,940,000 126,700,000 122,269,000 117,192,000
SFI @ $57mm INPUT 57,000,000 57,000,000 57,000,000 57,000,001
Repl & Refurb @ 2%/yr 65,973,000 67,292,000 68,638,000 70,011,000
Total 572,251,420 574,615,793 570,411,143 522,427,591
COP Ratios
Sr Lien Coverge, Min 1.25 2.62 2.69 2.89 2.75
Capital Improvement Project Summary
A - 4
Original FY 2011-12 Budget 119,922,400
% Change
Projects Completed or Canceled (2,189,000) (1.83%)
New Projects 372,000 0.31%
Additions to Existing Projects 56,428,000 47.05%
Deductions from Existing Projects (46,043,000) (38.39%)
Changes to Capital Equipment 679,500 0.57%
Revised FY 2007-08 Budget 129,169,900 7.71%
Original Total Budget 2,965,626,000
% Change
Projects Completed or Canceled (317,322,000) (10.70%)
New Projects 372,000 0.01%
Additions to Existing Projects 173,309,000 5.84%
Deductions from Existing Projects (20,009,000) (0.67%)
Changes to Capital Equipment - 0.00%
Revised Total Budget 2,801,976,000 (5.52%)
2011-12 Budget Update
A – 5
Project Summary FY 2011-12
2011-12
Replacement/ Improved Additional Cashflow
Item Rehabilitation Treatment Capacity Support Budget
Collections Facilities 28,061,500 237,350 2,855,800 97,350 31,252,000
Headworks 3,685,000 1,219,000 - - 4,904,000
Primary Treatment 298,000 768,000 - - 1,066,000
Secondary Treatment 306,000 7,524,370 2,940,630 - 10,771,000
Solids Handling & Digestion 21,758,000 2,969,700 2,575,300 - 27,303,000
Ocean Outfall Systems 4,898,000 - - - 4,898,000
Utility Systems 6,002,450 5,204,150 382,400 560,000 12,149,000
Odor Control Related Projects 2,079,600 436,400 - - 2,516,000
Plant Automation & Computerization 1,908,000 - 375,000 1,904,000 4,187,000
Process Related Special Projects - - - 1,992,000 1,992,000
Miscellaneous & Support Projects 18,443,900 1,033,050 50,000 2,644,050 22,171,000
Water Management Projects - - 100,000 - 100,000
Strategic & Master Planning - - - 80,000 80,000
Research & Development 690,000 386,000 286,000 2,297,000 3,659,000
Equipment 530,475 530,475 530,475 530,475 2,121,900
Total 88,660,925 20,308,495 10,095,605 10,104,875 129,169,900
Capital Improvement Expenditure Graphs
A - 6
$4,904,000Headworks3.8%
$2,121,900Equipment1.7%
$31,2522,000Collections Facilities24.2%
$1,066,000Primary Treatment0.8%
$80,000Strategic & Master Planning 0.1%$27,303,000Solids Handling & Digestion21.1%
$2,516,000Odor Control Projects2.0%
$10,771,000Secondary Treatment8.3%
$1,992,000Process Related Projects1.5%
$12,149,000Utility Systems9.4%
$4,898,000Ocean Outfall Systems3.8%$22,171,000Miscellaneous &Support Projects17.2%
$100,000Water Management Projects 0.1%
$4,187,000Plant Automation & Computerization3.2%
$3,659,000Research & Development2.8%
Total FY 2011-12 Capital Improvement Expenditure by Process - $129,169,900
$88,660,925Replacement / Rehabilitation68.6%
$20,308,495
Improved Treatment15.7%
$10,095,605
Additional Capacity7.8%
$10,104,875Support7.8%
Total FY 2011-12 Capital Improvement Expenditure by Type - $129,169,900
Summary of Capital Requirements
A – 7
Summary of Capital Requirements – Collection System Improvement Projects
Original Revised Original Revised
Total Total 2011-12 2011-12
Project Project Project Cashflow Cashflow Item
Number Budget Budget Budget Budget Number
Collections
Raitt and Bristol Street Sewer Extension 01-101 9,906,000 9,906,000 1
Santa Ana Trunk Sewer Rehab. 01-17 21,156,000 21,156,000 840,000 518,000 2
Santa Ana River Interceptor Realignment and Prot. 02-41 11,404,000 11,404,000 956,000 1,044,000 3
Santa Ana River Interceptor (SARI) Inspection and Mitigation 02-41-7 900,000 900,000 200,000 402,000 4
Taft Branch Improvements 02-49 3,143,000 3,143,000 5
Newhope-Placentia Trunk Grade Seperation Replacement 02-65 2,392,000 5,928,000 138,000 162,000 6
Fullerton-Brea Interceptor Sewer Relief 02-71 2,287,000 2,287,000 30,000 30,000 7
Newhope-Placentia Trunk Replacement 02-72 66,696,000 66,696,000 8
Yorba Linda Pumping Station Abandonment 02-73 9,566,000 9,566,000 9
Rehabilitation of the Westside Pump Station 03-52 11,668,000 12,053,000 252,000 208,000 10
Westside Relief Interceptor Relief 03-55 26,482,000 26,482,000 11
Rehabilitation of Magnolia Trunk Sewer 03-58 26,721,000 22,132,000 3,448,000 9,727,000 12
Miller-Holder Trunk Sewer Relief 03-59 17,324,000 17,324,000 13
Beach Trunk/Knott Interceptor Sewer Relief 03-60 25,055,000 25,055,000 14
Miller-Holder and Knott Trunks Odor Control Project 03-61 1,795,000 1,795,000 15
Seal Beach Pumping Station Upgrade and Rehabilitation 03-62 14,023,000 26,356,000 16
Seal Beach Pumping Station Force Main Rehabilitation 03-63 11,032,000 152,000 Canceled
Rehabilitation of 3-6, 3-8, and 3-21-1 Sewers 03-64 71,312,000 71,312,000 17
Balboa Trunk Sewer Rehabilitation 05-47 8,514,000 9,446,000 2,190,000 439,000 18
Replacement of the Bitter Point Pump Station 05-49 32,084,000 31,693,000 3,882,000 9,026,000 19
Replacement of the Rocky Point Pump Station 05-50 20,360,000 20,751,000 565,000 3,507,000 20
Bitter Point Force Main Rehabilitation 05-58 25,883,000 40,781,000 978,000 2,894,000 21
Newport Force Main Condition Assessment 05-60 22,591,000 23,779,000 633,000 450,000 22
Bayside Drive Improvement 05-61 3,415,000 Complete
Dover Drive Trunk Sewer Relief 05-63 13,346,000 13,346,000 9,120,000 533,000 23
Lido Pumping Station Upgrade and Rehabilitation 05-65 1,515,000 114,000 Canceled
Crystal Cove Pumping Station Upgrade and Rehabilitation 05-66 7,379,000 7,379,000 24
Bay Bridge Pumping Station Upgrade and Rehabilitation 05-67 46,852,000 46,852,000 25
District 6 Trunk Sewer Relief 06-17 5,126,000 5,126,000 48,000 48,000 26
Southwest Costa Mesa Trunk 06-19 13,309,000 15,240,000 491,000 330,000 27
Gisler-Redhill System Improvements, Reach B 07-37 9,622,000 11,002,000 6,869,000 1,080,000 28
Rehabilitation of College Ave. Pump Station 07-47 11,445,000 Complete
Browning Subtrunk Sewer Relief 07-60 11,172,000 11,172,000 29
County Island Annexation and CEQA Documentation 07-61 300,000 Complete
Continued
Summary of Capital Requirements
A - 8
Summary of Capital Requirements – Collection System Improvement Projects
Original Revised Original Revised
Total Total 2011-12 2011-12
Project Project Project Cashflow Cashflow Item
Number Budget Budget Budget Budget Number
Collections (Continued)
Von Karman Trunk Sewer Relief 07-62 433,000 433,000 30
MacArthur Pumping Station Upgrade and Rehabilitation 07-63 7,028,000 7,028,000 31
Edinger/Bolsa Chica Trunk Improvements 11-25 6,030,000 6,030,000 32
Coast Trunk Sewer Rehabilitation 11-26 9,121,000 Complete
Wintersburg Channel Siphon Protection Project 11-32 75,000 75,000 65,000 33
Edinger Pumping Station Upgrade and Rehabilitation 11-33 11,474,000 11,474,000 34
North County Collections Yard 15-04 12,270,000 16,000 Canceled
Facilities Engineering Projects - Collections FE-Collect 8,520,000 8,520,000 325,000 649,000 35
Replacement of the Ellis Ave. Pump Stn I-10 79,337,000 Complete
Siphon and Manhole Upgrade Feasibility Study SP-138 300,000 300,000 150,000 140,000 36
Total Collections Projects 700,363,000 603,922,000 31,397,000 31,252,000
Summary of Capital Requirements
A – 9
Summary of Capital Requirements –Treatment System Improvement Projects
Original Revised Original Revised
Total Total 2011-12 2011-12
Project Project Project Cashflow Cashflow Item
Number Budget Budget Budget Budget Number
Headworks
Headworks Rehab. and Expansion at Plant No. 1 P1-105 43,404,000 43,404,000 485,000 37
Headworks Expansion P1-120 222,804,000 222,804,000 38
Headworks Rehabilitation/Refurbishment P1-71 8,374,000 7,955,000 388,000 28,000 39
Headworks Improvements at Plant No. 2 P2-66 257,733,000 257,733,000 8,609,000 4,876,000 40
Headworks Total 532,315,000 531,896,000 9,482,000 4,904,000
Primary Treatment
Joint GWRS Microfiltration Backwash Redirection Project J-36-1 1,311,000 12,000 41
Primary Clarifiers 6-31 Evaluation and Optimization Study P1-116 150,000 1,171,000 756,000 42
Primary Effluent Pipeline Joint Repairs P1-118 3,246,000 3,246,000 43
Primary Treatment Rehab/Refurb P2-80 38,923,000 194,000 Complete
Primary Treatment Area Rehabilitation Study SP-137 300,000 300,000 150,000 298,000 44
54-inch Primary Effluent Butterfly Valve Use Study SP-144 25,000 Complete
Primary Treatment Total 42,644,000 6,028,000 344,000 1,066,000
Secondary Treatment
New Secondary Treatment System at Plant No. 1 P1-102 260,300,000 255,644,000 5,681,000 8,911,000 45
Activated Sludge Plant No.1 Upgrades P1-117 20,673,000 Canceled
Activated Sludge Plant Rehabilitation P1-82 46,761,000 Complete
Trickling Filters at Plant No. 2 P2-90 223,238,000 220,206,000 233,000 1,554,000 46
Oxygen Plant Rehabilitation at Plant No. 2 SP-129 2,500,000 2,500,000 1,562,000 306,000 47
Secondary Treatment Total 553,472,000 478,350,000 7,476,000 10,771,000
Solids Handling & Digestion
Sludge Digester Rehabilitation at Plant 1 P1-100 55,515,000 55,515,000 18,314,000 16,575,000 48
Sludge Dewatering and Odor control at Plant 1 P1-101 143,549,000 147,270,000 6,397,000 3,962,000 49
Digester Ferric Chloride System Rehabilitation P2-105 2,627,000 2,905,000 462,000 657,000 50
Demolition of Digesters A and B P2-110 4,756,000 5,405,000 51
Solids Storage Silo Rehabilitation P2-114 37,604,000 37,604,000 52
Solids Thickening and Processing Upgrades P2-89 61,135,000 57,796,000 1,919,000 3,166,000 53
Plant No. 2 Primary Sludge Feed System Project P2-91 26,524,000 337,000 Complete
Digester Rehabilitation at Plant No. 2 P2-91-1 45,637,000 45,637,000 444,000 54
Sludge Dewatering and Odor Control at Plant 2 P2-92 63,183,000 64,868,000 570,000 2,943,000 55
Replacement of Drying Beds and Truck Wash at Plant P2-97 4,443,000 277,000 Canceled
Food Waste Collection and Treatment Study SP-171 100,000 Canceled
Digesters 5 and 6 Conversion and Use Study SP-172 100,000 100,000 56
Solids Handling & Digestion Total 445,173,000 417,100,000 28,720,000 27,303,000
Summary of Capital Requirements
A - 10
Summary of Capital Requirements –Treatment System Improvement Projects
Original Revised Original Revised
Total Total 2011-12 2011-12
Project Project Project Cashflow Cashflow Item
Number Budget Budget Budget Budget Number
Ocean Outfall Systems
Final Effluent Sampler and Building Area Upgrades J-110 2,661,000 12,585,000 331,000 933,000 57
Outfall Land Section and OOBS Piping Rehabilitation J-112 7,540,000 21,739,000 1,043,000 3,901,000 58
Outfall Piping Rehabilitation Program Study J-113 370,000 80,000 Complete
Ocean Outfall Booster Station Rehabilitation (Electrical) J-114 13,059,000 Complete
66-inch Interplant Effluent Pipeline Rehabilitation J-116 62,052,000 72,517,000 59
Ocean Outfall Booster Station Rehabilitation (Mechanical) J-117 4,559,000 15,402,000 60
Outfall Beach Box Rehabilitation Evaluation J-119 330,000 330,000 64,000 61
Ocean Outfall Easement Renewal SP-143 25,000 Canceled
Outfall Pumping Cooling Water Bypass Study SP-154 25,000 25,000 Canceled
Alternative Effluent Disinfection Study SP-156 100,000 100,000 62
Santa Ana River Flap Gates Access Study SP-159 50,000 Canceled
Interplant Effluent Pipeline Alternate Use Study SP-164 10,000 Canceled
Ocean Outfall Systems Total 90,781,000 122,673,000 1,479,000 4,898,000
Utility Systems
Interplant Gas Line Rehabilitation J-106 4,504,000 5,271,000 147,000 608,000 63
Cengen Cooling Water System Replacement J-109 10,023,000 12,628,000 2,739,000 2,657,000 64
Cengen Emissions Control Project J-111 30,279,000 30,279,000 2,381,000 2,897,000 65
UPS System Upgrades J-121 13,012,000 13,012,000 66
Air Quality Improvements J-79 11,668,000 11,596,000 169,000 12,000 67
Central Generation Automation J-79-1 21,049,000 23,261,000 79,000 2,389,000 68
Electrical Power Distribution System Improvements J-98 9,773,000 9,773,000 69
Power Building 3A Backup Power Reliability Project P1-111 502,000 502,000 64,000 150,000 70
Plant Water System Rehabilitation at Plant No.1 P1-112 3,344,000 10,029,000 138,000 769,000 71
Flare Addition P1-119 2,083,000 2,083,000 72
Gas Compressor Upgrades P1-121 27,181,000 27,181,000 73
Plant 1 66kV Substation P1-97 15,153,000 15,169,000 58,000 74
Plant Water System Rehabilitation at Plant No.2 P2-101 3,659,000 3,864,000 294,000 80,000 75
Additional High Pressure Flare P2-103 1,993,000 2,116,000 76
15 kV Upgrades at Plant No. 2 P2-108 3,238,000 5,958,000 394,000 101,000 77
Gas Compressor Upgrades P2-109 22,362,000 22,362,000 78
SCE Feed Reliability Improvements P2-111 22,490,000 22,490,000 79
Energy Load Management and Shedding System P2-112 16,517,000 Canceled
Gas Holder Demolition P2-113 1,026,000 Canceled
Secondary Area Cable Tray Upgrades P2-116 2,154,000 2,154,000 80
Headworks Area Cable Tray Upgrades P2-117 3,015,000 3,015,000 81
Fuel Cell Feasibility Study SP-132 100,000 Complete
Fuel Cell Hydrogen Gas Generation Research SP-134 600,000 Complete
Continued
Summary of Capital Requirements
A – 11
Summary of Capital Requirements –Treatment System Improvement Projects
Original Revised Original Revised
Total Total 2011-12 2011-12
Project Project Project Cashflow Cashflow Item
Number Budget Budget Budget Budget Number
Utility Systems Projects (Continued)
Digester Gas Facilities Assessment SP-141 100,000 700,000 50,000 700,000 82
Utility Water Systems Study SP-146 475,000 800,000 200,000 800,000 83
Plant Air System Master Plan SP-148 220,000 340,000 100,000 340,000 84
Electrical System Base Map SP-149 220,000 250,000 100,000 85
Uninterruptible Power System (UPS) Study SP-150 100,000 342,000 50,000 342,000 86
Sidestream Pumping System and Water Characterization Study SP-155 170,000 246,000 246,000 87
Standby Power Generation Study SP-158 100,000 400,000 88
Communication Radio System Replacement SP-165 900,000 Complete
Power Outage Recovery Plan SP-170 100,000 100,000 89
Potable Water Quality Study SP-175 25,000 50,000 90
Utility Systems Total 228,135,000 225,971,000 6,905,000 12,149,000
Odor Control Related Projects
Coyote Hills Golf Course Odor Control Station 02-74 8,365,000 8,365,000 91
Rehabilitation of Odor Control Facilities J-71-8 44,124,000 44,124,000 6,783,000 168,000 92
Trickling Filter Odor Control at Plant No. 1 P1-113 5,182,000 5,821,000 628,000 204,000 93
Primary Scrubber Rehabilitation at Plant No.1 P1-114 41,732,000 41,732,000 94
Solids Storage Building Odor Control Project P2-102 10,720,000 816,000 Canceled
Chemical Scrubber Conversions and Piping System Improvements P2-106 3,261,000 2,807,000 2,032,000 2,046,000 95
Primary Treatment Odor Control Upgrades P2-98 35,691,000 35,691,000 2,844,000 96
Wastehauler Odor Control SP-140 100,000 100,000 50,000 98,000 97
Odor Control Master Plan SP-166 2,400,000 1,200,000 98
Odor Control Related Projects Total 151,575,000 139,840,000 13,153,000 2,516,000
Process Related Special Projects
Plant O&M Manual & SOP Project - Phase I SP-53 3,750,000 Complete
Corrosion Management SP-68-1 4,667,000 14,372,000 118,000 1,992,000 99
Special Projects: Biotrickling Filter (BTF) SP-90-7 29,000 12,000 Complete
Process Related Special Projects Total 8,446,000 14,372,000 130,000 1,992,000
Plant Automation & Computerization
Power Monitoring and Control Systems J-33-3 12,013,000 13,050,000 5,382,000 1,330,000 100
Strategic Information Architecture (SIA) SP-03 1,995,000 1,995,000 250,000 288,000 101
Internet/Intranet Development SP-09 650,000 650,000 60,000 24,000 102
CMMS System Replacement SP-100 3,789,000 5,000,000 1,156,000 1,500,000 103
PDS2D Software Replacement SP-103 250,000 250,000 50,000 115,000 104
Geographic Information System SP-15 4,047,000 4,047,000 690,000 350,000 105
Process SCADA Modbus Ethernet Redundancy SP-160 1,055,000 Canceled
VAX Server Migration to Modbus Ethernet SP-161 1,146,000 Canceled
Network Equipment Upgrade SP-89 1,157,000 2,905,000 140,000 580,000 106
Plant Automation & Computerization Total 26,102,000 27,897,000 7,728,000 4,187,000
Summary of Capital Requirements
A - 12
Summary of Capital Requirements –Treatment System Improvement Projects
Original Revised Original Revised
Total Total 2011-12 2011-12
Project Project Project Cashflow Cashflow Item
Number Budget Budget Budget Budget Number
Miscellaneous & Support Projects
Facilities Engineering Projects - Joint FE-J 23,910,000 23,910,000 1,290,000 81,000 107
Facilities Engineering Projects - Plant 1 FE-P1 20,910,000 20,910,000 1,127,000 3,307,000 108
Facilities Engineering Projects - Plant 2 FE-P2 20,910,000 20,910,000 757,000 3,499,000 109
Permanent Upgrades To Plant Security Barriers J-108 2,385,000 3,218,000 108,000 594,000 110
Emergency Operation Center J-115 100,000 150,000 111
Contracts and Purchasing Building Extension J-118 3,589,000 3,589,000 112
Operations Center Entrance/Building Repairs J-122 2,325,000 2,325,000 1,150,000 381,000 113
Title 24 Access Compliance Improvements at Plant No. 1 P1-115 10,000,000 28,778,000 1,085,000 2,009,000 114
Plant No. 2 Landscaping Project P2-96 545,000 545,000 200,000 65,000 115
Integrated Security Access Control System SP-128 450,000 900,000 90,000 160,000 116
2009 NPDES Permit Renewal SP-133 150,000 150,000 50,000 117
Software and Computer Equipment Replacement Project SP-135 2,700,000 2,700,000 270,000 270,000 118
Land Records Information System SP-136 410,000 410,000 195,000 122,000 119
Roof Condition Assessment and Rehabilitation Study SP-142 75,000 36,000 Canceled
Facility Assets Assessment SP-145 5,000,000 3,260,000 1,500,000 250,000 120
Plant 2 WSSPS Motor Location SP-145-2 72,000 72,000 121
Administrative Facilities Master Plan SP-147 250,000 250,000 100,000 250,000 122
Laboratory Water Piping Replacement SP-153 1,005,000 1,005,000 112,000 361,000 123
Stormwater Master Plan SP-167 300,000 300,000 124
Small Cap. Equip. Replacement Project SP-34 11,700,000 20,200,000 1,700,000 10,350,000 125
Asset Management Program SP-68-2 4,800,000 4,800,000 363,000 350,000 126
Warehouse Reinvention Project SP-77 600,000 Complete
Miscellaneous & Support Projects Total 112,114,000 138,382,000 10,083,000 22,171,000
Water Management Projects
Initial Expansion of the Groundwater Replenishment System SP-139 300,000 300,000 100,000 100,000 127
Effluent Reuse Study SP-173 60,000 60,000 128
Water Management Projects Total 360,000 360,000 100,000 100,000
Strategic & Master Planning
Orange County Biosolids Production Siting Study SP-105 400,000 Complete
Landscape Master Plan SP-145-4 150,000 129
Uniform Level of Service Standards SP-151 80,000 80,000 40,000 80,000 130
Climate Change Impact Study SP-152 100,000 100,000 50,000 131
Plant No. 2 Soil Liquefaction Study SP-177 250,000 173,000 132
Strategic & Master Planning Total 830,000 503,000 90,000 80,000
Summary of Capital Requirements
A – 13
Summary of Capital Requirements –Treatment System Improvement Projects
Original Revised Original Revised
Total Total 2011-12 2011-12
Project Project Project Cashflow Cashflow Item
Number Budget Budget Budget Budget Number
Research & Development
Process SCADA Replacement J-120 20,283,000 24,680,000 133
Fall Protection Improvements at Plants Nos.1 and 2 J-123 3,399,000 440,000 134
Process SCADA Network Upgrades P2-107 8,697,000 22,895,000 135
USBR Brine Management Grant Project SP-116 315,000 130,000 Complete
Research Strategic Plan SP-120 365,000 365,000 18,000 10,000 136
Superoxygenation of Primary Influent SP-121 850,000 850,000 245,000 165,000 137
Operational Research Projects (annual allocation) SP-125 10,040,000 10,000,000 1,000,000 1,000,000 138
Facilities-Wide Safety Assessment SP-145-1 300,000 300,000 139
Process SCADA Link to Pump Stations SP-157 100,000 193,000 140
North County Yard Information Continuity SP-162 666,000 Canceled
Data Storage Addition SP-163 444,000 444,000 444,000 141
Treatment Plant Hydraulic Assessment SP-168 300,000 300,000 300,000 142
Information Systems Upgrades and Replacements SP-169 12,510,000 12,510,000 1,000,000 143
Information Technology Data Center Replacement SP-174 2,566,000 2,566,000 144
Information Technology Workroom Replacement SP-176 180,000 180,000 145
Research & Development Projects Total 57,316,000 78,682,000 1,393,000 3,659,000
Total Treatment and Disposal Projects 2,249,263,000 2,182,054,000 87,083,000 95,796,000
Capital Equipment Purchases 16,000,000 16,000,000 1,442,400 2,121,900
Total Collection, Treatment and Disposal Projects $2,965,626,000 $2,801,976,000 $119,922,400 $129,169,900
CIP New Project Descriptions
Project Name & Number
Project Category
Plant 2 WSSPS Motor Location - SP-145-2
Project Budget:Miscellaneous & Support Projects $72,000
DescriptionThis study will evaluate the potential for the Plant No. 2 waste sidestream pumping station (WSSPS) 2A pumps
and motors to become damaged by flooding, and provide alternatives to the existing configuration.
This study will evaluate access limitations created by area classification modifications made by the J-35 Project.
JustificationThe pumps and motor for the waste sidestream pumping station (WSSPS) 2A are located in a recessed area
within Tremblay Tunnel subject to flooding and have been flooded at least three times in the past. This occurred recently due to a water pipeline leak. The tunnel sump pumps failed to prevent inundation. It is possible that the pump shaft could be extended to move the motors above the tunnel, or the pump/motor assembly might be
replaced with a dry pit submersible unit. Area classification modifications made by the J-35 Project impacted access to the pump and motor.
This item is based on OCSD 2009 Facilities Master Plan Recommendation 040902.
Project Name & Number
Project Category
Facilities-Wide Safety Assessment - SP-145-1
Project Budget:Safety & Security Improvements $300,000
Description
This study will provide a facility-wide assessment of the significant structural safety issues (ladders, handrail, hatches, etc.) potentially affecting the CIP program. The significance is determined by the potential for: worker injury, OCSD liability, or high mitigation cost.
This study is not intended to address non-structural safety issues such as training, Personal Protective Equipment
(PPE), or operational plans.
JustificationOCSD facilities have been constructed with varying compliance with safety codes. While the safety issues created by the configurations may have a low probability of causing injury, the consequence could be high in terms of injury and OCSD liability. The cost to mitigate these structural issues after construction is high. Dealing with these
issues on a case-by-case basis is not cost effective. OCSD would benefit greatly by having consistent facilities-wide structural safety standards.
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FY 2011-12 Budget Update
A - 15
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Proposed Equipment Budget Summary
A - 16
Proposed Equipment Budget
2011-12
Department
Trucks &
Vehicles
09410000
Other
Mobile Eq
09410001
Machine Eq
& Tools
09410002
Comm
Equipment
09410003
Contracts, Purchasing, & Materials Management - - - -
Information Technology - - - -
Equipment / Rebuild 852,200 33,300 - -
Mechanical & Reliability Maintenance - - 26,600 -
Instrumentation & Electrical Maintenance - - - 35,000
Environmental Laboratory & Ocean Monitoring - - - -
Total Proposed Capital Equipment 852,200 33,300 26,600 35,000
FY 2011-12 Budget Update
A - 17
Proposed Equipment Budget 2011-12
Department
Instr / Test
Equipment
09410004
Safety &
Traffic Eq
09410005
Office Fix
& Eq
09410006
Computer
Equipment
09410007
2011-12
Proposed
Budget
Contracts, Purchasing, & Materials Management - 65,300 - - 65,300
Information Technology - - - 803,400 803,400
Equipment / Rebuild - - - - 885,500
Mechanical & Reliability Maintenance 27,000 - - - 53,600
Instrumentation & Electrical Maintenance 129,700 - - - 164,700
Environmental Laboratory & Ocean Monitoring 149,400 - - - 149,400
Total Proposed Capital Equipment 306,100 65,300 - 803,400 2,121,900
Proposed Equipment Budget Detail
A - 18
Proposed Equipment Budget Detail
Division Equipment Type
Proposed Equip.
Budget
Parts Picker Jack (2)65,300
Total 65,300
Video and Storage Equipment ($30,000 Re-budget) - process areas 60,000
Video Storage Equipment (Re-budget) - pump stations 20,000
Off-the-Shelf Software for Source Control Application (Re-budget)300,000
Data Communication Device/Router 17,700
Hydraulic Modeling & Viewing Software 51,700
Server & Licenses - SCADA Modernization 354,000
Total 803,400
Pickup Truck - Replace V# 0493 43,600
Pickup Truck - Replace V# 0440 43,600
Truck with 5,000 lb Crane - Replace V# 0399 81,100
Truck Crane - Replace V# 0505 509,800
Sport Utility Vehicle - Replace V# 0484 39,600
Twelve-Passenger Van Pool Van - Replace V# 0547 42,300
HVAC Utility Truck - Replace V# 0421 45,000
Pickup Truck - Replace V# 0459 33,300
Pickup Truck - Replace V# 0454 47,200
Total 885,500
Fluke Ti55 Infrared Camera 27,000
Portable Jetter 26,600
Total 53,600
Programmable Logic Controller Test Station (2)48,500
2,000 kW Portable Electric Load Bank 61,500
Electric Megger 5,600
Portable Vibration Sensor Calibrator 14,100
PLC Rack Upgrade Ethernet Communication Module (7)35,000
Total 164,700
Automated Sample Digestion System 28,900
Auto-titrator 36,000
OI Analytical Autosampler Replacement 25,000
Accelerated Solvent Extractor, ASE Replacement 42,000
Blue M Ultra-Temp Convection Oven Replacement 17,500
Total 149,400
Total Proposed 2011-12 CORF Equipment Budget 2,121,900
230 - Contracts, Purchasing, & Materials Management
850 - Mechanical & Reliability Maintenance
320 - Equipment / Rebuild
250 - Information Technology
890 - Environmental Laboratory & Ocean Monitoring
860 - Instrumentation & Electrical Maintenance
FY 2011-12 Budget Update
A - 19
Listing of Proposed Purchases Over $100,000 Resolution 07-04, “Establishing Policies and Procedures For: The Award of Purchase Orders and Contracts; Public Works Project Contracts; Professional Services Contracts; and Delegation of Authority to Implement Said Policies and Procedure,” was adopted by the Board on February 28, 2007. Article IV, Section 4.03(B) of the Resolution provides that, “Purchases of
supplies, materials, equipment or services, including Professional Service Consultants…as outlined in each Fiscal Year’s annual budget, to include capital equipment, shall be bid and awarded directly by the Contracts/Purchasing Manager.” The annual authorization amount for a multi-year contract is determined in the year the contract is bid/let. Therefore, the
contract authorization amount indicated herein is valid only when the contract is bid/let in FY 2011-12. Following are services or supply items identified in the budget process with a cost greater than $100,000. Staff requests the Board approve the purchase of these items and those listed in the Proposed Equipment Budget Detail listing without further
Board action in accordance with the referenced policy. Contract Change OrderDescription of Services or Supplies Division Authorization Contingency (1)
Chemical ContractsAnionic polymers for primary treatment 830/840 413,000$ 0% (2)Cationic polymers for solids dewatering and coagulation 830/840 1,700,000 0% (2)Ferric chloride for primary treatment 830/840 5,834,000 0% (2)Caustic soda (50%) for odor and corrosion control 340 270,700 0% (2)Caustic soda (25%) for odor and corrosion control 830/840 346,500 0% (2)Hydrogen peroxide for odor control 830 1,321,000 0% (2)Magnesium hydroxide for odor and corrosion control 340 2,646,000 0% (2)Ferrous chloride for odor and corrosion control 340 3,127,690 0% (2)Calcium nitrate for odor and corrosion control 340 966,000 0% (2)Bleach for disinfection and odor control 830/840 3,557,400 0% (2)Sodium bisulfite for dechlorination 840 427,900 0% (2)
Other ContractsLegislative/lobbying services 140 185,000 10%Uniform contract 230 300,000 10%IBM Software Maintenance 250 210,500 10%Microsoft Enterprise License Agreement 250 218,500 10%Oracle Software Maintenance 250 138,000 10%License & Service Maintenance of Plant Security Systems 250 110,000 10%Security services contract 260 500,000 10%Hazardous waste services 260 166,800 10%Vehicle fuels and lubricants 320 200,000 10%Digester cleaning and disposal 330 1,422,710 10%Replacing manhole frames & covers 330 233,350 10%Local & Regional Sewer Line Cleaning 330 500,000 10%Manhole structural repair and coating services 330 300,000 10%Sewer repair / relining 330 230,000 10%CCTV Services for sewers 330 360,000 10%Purchasing manhole frames/covers 330 197,500 10%Sewer spot repairs 330 100,000 10%Easement/right-of-way maintenance 330 150,000 10%Raising manholes for City/County street overlays 330 150,000 10%Underground emergency repairs for sinkholes 330 200,000 10%Groundskeeping services contract 330 170,000 10%Custodial services contract 330 470,000 10%Process area preventive maintenance/painting program 330 750,000 10%Dig Alert and street overlay program contract 340 100,000 10%Air quality compliance testing 790 135,000 10%Air quality emissions and permit fees 790 200,000 10%NPDES permit fees 790 325,980 10%Core OMP benthic infauna taxonomy 890 152,400 10%Solids removal 830/840 18,500,000 10%Grit and screenings hauling and disposal 830/840 700,000 10%Oxygen plant services for secondary treatment 840 478,000 10%City water - Fountain Valley 830 320,000 10%City water - Huntington Beach 840 219,000 10%Carbon replacement - odor control 830 431,210 10%CenGen heat recovery units retubing 860 120,000 10%Carbon changes for CenGen Di-Gas Cleaning 860 175,000 10%Electric arc flash study (OSHA requirement)860 200,000 10%Natural gas 830/840/860 678,000 10%
GAP water 860 900,000 10%
Total 51,507,140$
Note 1: The change order contingency is for the lifetime of the contract and is based on the annual authorized
amount in the year the contract is bid/let. [For example, a three-year contract which is authorized for an annual
contract amount of $300,000 with a 10% change order contingency must be initially bid/let for less than or equal
to $300,000; over the life of the contract, the total change orders may not exceed 10% of $300,000, or $30,000.]
Note 2: Once a chemical contract is bid/let, there is no increase in unit cost allowed without Board approval.
Self-Funded Insurance Plans
A - 20
SELF-FUNDED INSURANCE PLANS The General Liability and Property program and the Workers’ Compensation program provide for the District to be partially self-insured for general liability and workers’ compensation. The in-lieu premiums charged to the
operating divisions are the revenue source for these programs. Expenses primarily consist of settlement claims, legal fees and excess loss insurance premiums. Ending Reserve Balances are projected at $57 million.
General Liability and Property The District’s current excess general liability insurance coverage is $30 million per occurrence with an
annual aggregate limit and with a self-insured retention of $250,000 and $500,000 for EPLI.
The District’s current property insurance coverage is $1 billion for perils of fire and $300 million for perils of flood, subject to a self-insured retention of 5 percent per unit of insurance up to $250,000 for fire and
$100,000 for flood. The District is completely self-insured for earthquake.
In order to maintain the reserve balance of $55 million for the General Liability and Property program,
appropriations for in-lieu premiums charged to operating divisions are recommended at $1,082,100 for FY 2011-12.
Workers’ Compensation The District’s current excess workers’ compensation coverage has unlimited statutory coverage per
occurrence and $4.5 million employer’s liability per employee with a self-insured retention of $500,000 per person per occurrence. In order to maintain the reserve balance of $2 million for the Workers’ Compensation program,
appropriations for in-lieu premiums charged to operating divisions are recommended at $550,000 for FY 2011-12. FY 2011-12 Self-Insurance Program Budget
General Liability Workers' Total
& Property Compensation Self-Insurance
DESCRIPTION OR ACCOUNT TITLE Program Program Program
Beginning Reserves 55,500,000$ 2,000,000$ 57,500,000$
Revenues
In-Lieu Premiums 1,082,100 550,000 1,632,100
Claims Reimbursement from Other Funds - - -
Service Department Allocation 24,100 - 24,100
Total Revenues 1,106,200 550,000 1,656,200
Expenses
Benefits/Claims 200,000 250,000 450,000
Contractual Services 1,200 45,000 46,200
Legal Services 300,000 35,000 335,000
Professional Services 5,000 10,000 15,000
Policy Premium Expense 1,100,000 210,000 1,310,000
Total Expenses 1,606,200 550,000 2,156,200
Excess Revenue (Expenses)(500,000) - (500,000)
Ending Reserves 55,000,000$ 2,000,000$ 57,000,000$
Historical Staffing Summary
A – 21
Authorized Authorized Authorized Authorized Proposed
Department and Division Name FTE FTE FTE FTEs FTEs2007-08 2008-09 2009-10 2010-11 2011-12
Office of the General Manager
General Management Administration 6.50 6.50 4.00 5.00 3.00
Assistant General Manager Administration 3.00 3.00 1.00 - -
Board Services 5.25 5.25 2.00 2.00 2.00
Public Affairs 7.00 7.00 8.00 8.00 8.00
Department Subtotal 21.75 21.75 15.00 15.00 13.00
Human Resources Department
Human Resources - - - - 20.00
Department Subtotal - - - - 20.00
Administrative Services Department
Administrative Services 2.00 2.00 3.00 5.00 5.00
Financial Management 18.00 18.00 19.00 18.00 17.00
Contracts, Purchasing & Materials Management 31.50 29.50 28.75 28.75 30.75
Human Resources 16.00 16.00 17.00 27.00 -
Information Technology 30.00 31.00 32.00 33.00 45.00
Safety & Health 8.50 8.00 9.00 - -
Risk Management - - - - 13.00
Department Subtotal 106.00 104.50 108.75 111.75 110.75
Facilities Support Services Department
Facilities Support Services Administration - - - - 3.75
Equipment / Rebuild - - - - 18.00
Facilities Engineering - - - - 13.00
Collection Facilities - - - - 49.00
Department Subtotal - - - - 83.75
Technical Services Department
Technical Services Administration 3.00 4.00 4.00 4.00 -
Environmental Compliance & Regulatory Affairs 18.50 16.50 16.00 15.00 -
Environmental Laboratory & Ocean Monitoring 48.50 46.50 46.50 43.50 -
Source Control 39.00 40.00 39.00 40.00 -
Department Subtotal 109.00 107.00 105.50 102.50 -
Engineering Department
Engineering Administration 2.00 2.00 2.00 2.00 2.00
Planning 16.00 19.00 17.00 9.00 12.00
Project Management Office 17.00 17.00 19.00 18.00 17.00
Engineering & Construction 58.50 60.50 57.50 57.50 58.50
Facilities Engineering 11.00 10.00 10.00 9.00 -
Asset Management - - - 25.00 6.00
Environmental Compliance - - - - 33.00
Department Subtotal 104.50 108.50 105.50 120.50 128.50
Operations & Maintenance Department
Operations & Maintenance Administration 2.00 2.00 2.00 3.00 2.75
Odor & Corrosion Control 12.00 14.50 14.50 9.50 -
Plant No. 1 Operations 41.75 44.75 45.75 49.75 52.75
Plant No. 2 Operations 46.00 48.00 48.00 47.00 47.00
Mechanical and Reliability Maintenance 74.00 57.00 59.00 58.00 62.00
Instrumentation & Electrical Maintenance 71.00 75.00 76.00 63.00 75.00
Regional Assets & Services 6.00 - - - -
Collection Facilities Operations & Maintenance 23.00 24.00 27.00 26.00 -
Facilities Maintenance & Fleet Services 17.00 34.00 34.00 35.00 -
Environmental Laboratory & Ocean Monitoring - - - - 41.50
Department Subtotal 292.75 299.25 306.25 291.25 281.00
Grand Total - All Departments 634.00 641.00 641.00 641.00 637.00
Historical Staffing Detail
A – 22
Authorized Authorized AuthorizedApproved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
Office of the General Manager
110 General Management Administration
General Manager 1.00 1.00 1.00 1.00 1.00
Assistant General Manager - - - 1.00 1.00
Management Discretion 4.00 4.00 2.00 2.00 -
Secretary to the General Manager 1.00 1.00 1.00 1.00 1.00
Intern 0.50 0.50 - - -
Total General Management Administration 6.50 6.50 4.00 5.00 3.00
150 Assistant General Manager Administration
Assistant General Manager 1.00 1.00 1.00 - -
Legislative Affairs Liaison 1.00 1.00 - - -
Principal Financial Analyst 1.00 1.00 - - -
Total Asst. General Management Administration 3.00 3.00 1.00 - -
120 Board Services (formerly division 151)
Clerk of the Board 1.00 1.00 1.00 1.00 1.00
Records Management Specialist 1.00 1.00 - - -
Associate Clerk of the Board II 1.00 1.00 1.00 1.00 1.00
Administrative Assistant - 0.25 - - -
Program Assistant 0.25 - - - -
Office Assistant 2.00 2.00 - - -
Total Board Services 5.25 5.25 2.00 2.00 2.00
140 Public Affairs (formerly division 152)
Public Information Manager 1.00 1.00 - - -
Public Affairs Manager - - 1.00 1.00 1.00
Principal Public Information Specialist 1.00 1.00 2.00 2.00 2.00
Senior Public Information Specialist 2.00 2.00 1.00 1.00 1.00
Public Information Specialist 2.00 2.00 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Office Assistant - - 2.00 2.00 2.00
Total Public Affairs 7.00 7.00 8.00 8.00 8.00
Total Office of the General Manager 21.75 21.75 15.00 15.00 13.00
Human Resources Department
160 Human Resources (formerly part of division 240)
Director of Human Resources - - - - 1.00
Management Discretion - - - - 3.00
Human Resources Supervisor - - - - 1.00
Principal Human Resources Analyst - - - - 1.00
Senior Human Resources Analyst - - - - 6.00
CMMS Technician II - - - - 1.00
Associate Engineer l - - - - 1.00
Human Resources Analyst - - - - 3.00
Human Resources Assistant - - - - 2.00
Program Assistant - - - - 1.00
Total Human Resources - - - - 20.00
Total Human Resources Department - - - - 20.00
Administrative Services Department
210 Administrative Services
Director of Finance & Administrative Services / Treasurer 1.00 1.00 1.00 1.00 1.00
Engineer - - - 1.00 -
Principal Financial Analyst - - 1.00 1.00 1.00
Principal Staff Analyst - - - 1.00 1.00
Principal Environmental Specialist - - - - 1.00
Executive Assistant 1.00 1.00 1.00 1.00 1.00
Total Finance Administration 2.00 2.00 3.00 5.00 5.00
2011-12 Budget Update
A – 23
Authorized Authorized AuthorizedApproved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
220 Financial Management
Controller 1.00 1.00 1.00 1.00 1.00
Accounting Manager 2.00 2.00 2.00 1.00 1.00
Accounting Supervisor 1.00 1.00 1.00 2.00 2.00
Principal Accountant 3.00 3.00 3.00 3.00 3.00
Principal Financial Analyst 2.00 2.00 1.00 1.00 -
Senior Accountant - - 1.00 1.00 1.00
Senior Staff Analyst 1.00 1.00 - - -
Accountant/Staff Analyst 1.00 1.00 2.00 2.00 2.00
Contracts/Purchasing Assistant - - 1.00 - -
Payroll Technician 2.00 2.00 2.00 2.00 2.00
Accounting Assistant II 5.00 5.00 5.00 5.00 5.00
Total Financial Management 18.00 18.00 19.00 18.00 17.00
230 Contracts, Purchasing & Materials Management
Contracts & Purchasing Manager 1.00 1.00 1.00 1.00 1.00
Contracts Supervisor 1.00 1.00 1.00 1.00 1.00
Purchasing Supervisor 1.00 1.00 1.00 1.00 1.00
Principal Contracts Administrator 1.00 2.00 2.00 2.00 2.00
Materials Control Supervisor 1.00 1.00 1.00 1.00 -
Senior Contracts Administrator 5.50 3.50 2.75 2.75 2.75
Planner/Scheduler - - - - 1.00
Contracts Administrator 4.00 3.00 3.00 3.00 3.00
Senior Buyer 2.00 2.00 2.00 2.00 2.00
Buyer 2.00 2.00 2.00 2.00 2.00
Administrative Assistant 5.00 3.00 - - -
Contracts/Purchasing Assistant - 2.00 4.00 4.00 5.00
Lead Storekeeper 3.00 3.00 3.00 3.00 2.00
Senior Storekeeper 3.00 3.00 3.00 3.00 4.00
Storekeeper 2.00 2.00 3.00 3.00 4.00
Total Contracts, Purchasing & Materials Management 31.50 29.50 28.75 28.75 30.75
240 Human Resources (formerly division 510,520,540,550)
Human Resources & Employee Relations Manager 1.00 1.00 1.00 1.00 -
Human Resources Supervisor 2.00 2.00 2.00 2.00 -
Safety & Health Supervisor - - - 1.00 -
Principal Human Resources Analyst 1.00 1.00 1.00 1.00 -
Safety & Health Specialist - - - 3.00 -
Security & Emergency Planning Specialist - - - 1.00 -
Senior Human Resources Analyst 5.00 5.00 5.00 6.00 -
Human Resources Analyst 3.00 3.00 3.00 3.00 -
Safety & Health Representative - - - 2.00 -
Human Resources Assistant 3.00 3.00 3.00 5.00 -
Program Assistant 1.00 1.00 1.00 1.00 -
Interns for agency - - 1.00 1.00 -
Total Human Resources 16.00 16.00 17.00 27.00 -
250 Information Technology (formerly divisions 910, 920, 930, and 940)
Information Technology Systems & Operations Manager 1.00 1.00 1.00 1.00 1.00
Information Technology Manager 1.00 2.00 2.00 2.00 2.00
Information Technology Supervisor - - - - 1.00
Principal Information Technology Analyst 2.00 7.00 6.00 6.00 6.00
Senior Information Technology Analyst 4.00 8.00 9.00 10.00 10.00
Information Technology Analyst III 3.00 5.00 4.00 4.00 2.00
Engineering Associate - - - - 1.00
Records Management Specialist - - 1.00 1.00 1.00
CMMS Technician II - - - - 5.00
Information Technology Analyst II 1.00 2.00 3.00 3.00 3.00
Engineering Data Management Technician II - - - - 3.00
CMMS Technician I - - - - 1.00
Information Technology Analyst I 2.00 2.00 2.00 2.00 2.00
Engineering Assistant II - - - - 1.00
Staff Analyst 1.00 1.00 1.00 1.00 1.00
Executive Assistant 1.00 1.00 - - -
Administrative Assistant - - 1.00 1.00 1.00
Engineering Assistant I - - - - 1.00
Information Technology Technician II 2.00 2.00 2.00 2.00 2.00
Program Assistant - - - - 1.00
Total Information Technology 18.00 31.00 32.00 33.00 45.00
Historical Staffing Detail
A – 24
Authorized Authorized Authorized Approved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
260 Risk Management (formerly part of division 240)
Risk Manager - - - - 1.00
Safety & Health Supervisor - - - - 1.00
Principal Financial Analyst - - - - 1.00
Safety & Health Specialist - - - - 2.00
Security & Emergency Planning Specialist - - - - 1.00
Information Technology Analyst III - - - - 1.00
Occupational Health Nurse - - - - 1.00
Senior Safety & Health Representative - - - - 1.00
Safety & Health Representative - - - - 3.00
Administrative Assistant - - - - 1.00
Total Human Resources - - - - 13.00
940 Information Technology Programming & Database Systems
Information Technology Manager 1.00 - - - -
Principal Information Technology Analyst 5.00 - - - -
Senior Information Technology Analyst 4.00 - - - -
Information Technology Analyst III 2.00 - - - -
Total Programming & Database Systems 12.00 - - - -
153 Safety & Health
Safety & Health Manager 1.00 1.00 1.00 - -
Safety & Health Supervisor 1.00 1.00 1.00 - -
Safety & Health Specialist 2.00 2.00 3.00 - -
Security & Emergency Planning Specialist 1.00 1.00 1.00 - -
Safety & Health Representative 2.00 2.00 2.00 - -
Human Resources Assistant 1.00 1.00 1.00 - -
Intern 0.50 - - - -
Total Safety & Health 8.50 8.00 9.00 - -
Total Administrative Services Department 106.00 104.50 108.75 111.75 110.75
Facilities Support Services Department
310 Facilities Support Services Administration
Director of Facilities Support - - - - 1.00
Principal Financial Analyst - - - - 1.00
Executive Assistant - - - - 1.00
Intern - - - - 0.75
Total Facilities Support Services Administration - - - - 3.75
320 Equipment / Rebuild
Facilities Manager - - - - 1.00
Maintenance Supervisor - - - - 2.00
Lead Mechanic - - - - 1.00
Machinist - - - - 1.00
Automotive/ Heavy Equipment Technician - - - - 3.00
Equipment Operator - - - - 2.00
Senior Mechanic - - - - 3.00
Welder/Fabricator - - - - 3.00
Automotive/ Heavy Equipment Assistant - - - - 1.00
Office Assistant - - - - 1.00
Total Equipment / Rebuild - - - - 18.00
330 Facilities Engineering (formerly division 770)
Engineering Manager - - - - 1.00
Engineering Supervisor - - - - 1.00
Senior Engineer - - - - 1.00
Engineer - - - - 2.00
Materials Control Supervisor - - - - 1.00
Maintenance Specialist - - - - 4.00
Senior Engineering Associate - - - - 1.00
Engineering Associate - - - - 1.00
Administrative Assistant - - - - 1.00
Total Facilities Engineering - - - - 13.00
2011-12 Budget Update
A – 25
Authorized Authorized AuthorizedApproved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
340 Collection Facilities
Source Control Manager - - - - 1.00
Engineering Supervisor - - - - 3.00
Maintenance Supervisor - - - - 2.00
Associate Engineer lll - - - - 1.00
Principal Environmental Specialist - - - - 1.00
Senior Environmental Specialist - - - - 3.00
Source Control Inspector II - - - - 9.00
Lead Mechanic - - - - 5.00
Administrative Assistant - - - - 1.00
Senior Mechanic - - - - 9.00
Engineering Assistant I - - - - 1.50
Environmental Technician - - - - 4.00
Mechanic - - - - 8.00
Intern - - - - 0.50
Total Collection Facilities - - - - 49.00
Total Facilities Support Services Department - - - - 83.75
Technical Services Department
610 Technical Services Administration
Director of Technical Services 1.00 1.00 1.00 1.00 -
Senior Engineer 1.00 1.00 1.00 1.00 -
Associate Engineer III - - 1.00 1.00 -
Associate Engineer II - 1.00 - - -
Executive Assistant 1.00 1.00 1.00 1.00 -
Total Technical Services Administration 3.00 4.00 4.00 4.00 -
620 Environmental Compliance & Regulatory Affairs
Environmental Assessment Manager 1.00 1.00 1.00 1.00 -
Environmental Supervisor 3.00 2.00 2.00 1.00 -
Senior Engineer 1.00 1.00 1.00 - -
Senior Scientist 1.00 1.00 1.00 1.00 -
Engineer 1.00 1.00 1.00 - -
Regulatory Specialist 3.00 2.00 2.00 2.00 -
Associate Engineer III 1.00 1.00 1.00 1.00 -
Principal Environmental Specialist 2.00 1.50 1.50 1.50 -
Principal Laboratory Analyst - - - 1.00 -
Senior Environmental Specialist 3.00 3.50 3.50 3.50 -
Administrative Assistant 1.00 1.00 1.00 1.00 -
Program Assistant - - - 1.00 -
Intern 1.50 1.50 1.00 1.00 -
Total Environmental Compliance 18.50 16.50 16.00 15.00 -
630 Environmental Laboratory and Ocean Monitoring
Laboratory Manager 1.00 1.00 1.00 1.00 -
Environmental Supervisor 1.00 1.00 1.00 1.00 -
Laboratory Section Supervisor 3.00 3.00 3.00 3.00 -
LIMS Administrator 1.00 1.00 1.00 - -
Senior Scientist 3.00 3.00 3.00 3.00 -
Boat Captain 1.00 - - - -
Scientist 2.00 2.00 2.00 2.00 -
Principal Environmental Specialist 2.00 2.00 2.00 2.00 -
Principal Laboratory Analyst 10.00 10.00 8.00 7.00 -
Senior Environmental Specialist 3.00 4.00 5.00 6.00 -
Senior Laboratory Analyst 11.00 11.00 11.00 10.00 -
Environmental Specialist 1.00 1.00 1.00 1.00 -
Laboratory Analyst 3.00 3.00 4.00 3.00 -
Administrative Assistant 1.00 1.00 1.00 1.00 -
Laboratory Assistant 3.00 3.00 3.00 3.00 -
Program Assistant 1.00 - - - -
Intern 1.50 0.50 0.50 0.50 -
Total Environmental Laboratory and Ocean Monitoring 48.50 46.50 46.50 43.50 -
Historical Staffing Detail
A – 26
Authorized Authorized AuthorizedApproved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
640 Source Control
Source Control Manager 1.00 1.00 1.00 1.00 -
Engineering Supervisor 2.00 2.00 2.00 3.00 -
Senior Engineer - - - 1.00 -
Senior Regulatory Specialist 1.00 1.00 1.00 1.00 -
Engineer 6.00 6.00 6.00 6.00 -
Regulatory Specialist 1.00 1.00 1.00 - -
Source Control Supervisor 1.00 1.00 1.00 1.00 -
Associate Engineer III 3.00 3.00 3.00 3.00 -
Principal Environmental Specialist 2.00 2.00 2.00 2.00 -
Senior Environmental Specialist 1.00 2.00 2.00 2.00 -
Source Control Inspector II 12.00 11.00 11.00 11.00 -
Administrative Assistant 1.00 1.00 1.00 1.00 -
Environmental Technician 3.00 3.00 3.00 3.00 -
Program Assistant 4.00 5.00 4.00 4.00 -
Office Assistant 1.00 1.00 1.00 1.00 -
Total Source Control 39.00 40.00 39.00 40.00 -
Total Technical Services Department 109.00 107.00 105.50 102.50 -
Engineering Department
710 Engineering Administration
Assistant General Manager - - - - 1.00
Director of Engineering 1.00 1.00 1.00 1.00 -
Executive Assistant 1.00 1.00 1.00 1.00 1.00
Total Engineering Administration 2.00 2.00 2.00 2.00 2.00
740 Planning
Engineering Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 1.00 2.00 2.00 1.00 1.00
Senior Engineer - 1.00 2.00 1.00 4.00
Engineer 2.00 3.00 1.00 1.00 1.00
Principal Staff Analyst - - 1.00 1.00 -
Associate Engineer III 1.00 - - - 1.00
Senior Engineering Associate 2.00 3.00 1.00 1.00 1.00
Senior Engineering Data Management Specialist 1.00 1.00 - - -
Associate Engineer lI - - - 1.00
Engineering Associate 2.00 2.00 2.00 1.00 1.00
Engineering Data Management Technician II 3.00 2.00 2.00 - -
Associate Engineer l - - 1.00 1.00 -
Engineering Assistant II - 1.00 1.00 - -
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Engineering Assistant I 2.00 2.00 2.00 - -
Total Planning 16.00 19.00 17.00 9.00 12.00
750 Project Management Office
Engineering Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 1.00 1.00 1.00 - -
CIP Project Management Supervisor - - 1.00 1.00 1.00
Program Controls Supervisor - - - 1.00 1.00
Senior Capital Improvement Program Project Manager 1.00 1.00 - - -
Capital Improvement Program Project Manager 6.00 6.00 6.00 5.00 5.00
Senior Engineer - 1.00 1.00 1.00 1.00
Principal Project Controls Analyst - - 1.00 1.00 1.00
Principal Engineering Data Management Specialist 1.00 1.00 1.00 1.00 -
Principal Staff Analyst 2.00 2.00 2.00 1.00 2.00
Cost Estimator 1.00 1.00 1.00 1.00 1.00
Planner/Scheduler 1.00 1.00 1.00 1.00 1.00
Senior Staff Analyst - - - 1.00 1.00
Engineering Assistant II 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 - 1.00 1.00 -
Office Assistant 1.00 1.00 1.00 1.00 1.00
Total Project Management Office 17.00 17.00 19.00 18.00 17.00
2011-12 Budget Update
A – 27
Authorized Authorized Authorized Approved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
760 Engineering & Construction
Engineering Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 4.00 4.00 4.00 3.00 3.00
Senior Construction Inspection Supervisor 1.00 1.00 1.00 1.00 1.00
Senior Engineer 8.00 9.00 8.00 8.00 8.00
Construction Inspection Supervisor 3.00 2.00 2.00 2.00 2.00
Engineer 10.00 12.00 10.00 13.00 15.00
Principal Staff Analyst - 1.00 - - -
Associate Engineer lII 4.00 5.00 4.00 3.00 2.00
Senior Engineering Associate 1.00 1.00 1.00 1.00 1.00
Senior Construction Inspector 7.00 7.00 7.00 7.00 7.00
Associate Engineer lI - - - 1.00 1.00
Senior Staff Analyst - - 1.00 - -
Construction Inspector 10.00 10.00 10.00 10.00 9.00
Associate Engineer l - - 1.00 - 1.00
Engineering Assistant II 3.00 2.00 2.00 2.00 2.00
Public Information Specialist - - 1.00 1.00 1.00
Administrative Assistant 3.00 4.00 3.00 3.00 3.00
Engineering Assistant I 1.00 1.00 1.00 1.00 1.00
Office Assistant 1.00 - - - -
Intern 1.50 0.50 0.50 0.50 0.50
Total Engineering & Construction 58.50 60.50 57.50 57.50 58.50
770 Facilities Engineering
Engineering Manager 1.00 1.00 1.00 1.00 -
Engineering Supervisor 1.00 1.00 1.00 1.00 -
Senior Engineer 1.00 - - 1.00 -
Engineer 5.00 5.00 5.00 3.00 -
Associate Engineer lll 1.00 1.00 - - -
Associate Engineer II 1.00 - 1.00 1.00 -
Engineering Associate - 1.00 1.00 1.00 -
Administrative Assistant 1.00 1.00 1.00 1.00 -
Total Facilities Engineering 11.00 10.00 10.00 9.00 -
780 Asset Management
Engineering Manager - - - 1.00 1.00
Engineering Supervisor - - - 2.00 -
Senior Engineer - - - 4.00 3.00
Principal Information Technology Analyst - - - 2.00 -
Engineer - - - 3.00 1.00
Utilities Management Specialist - - - 1.00 1.00
Senior Information Technology Analyst - - - 3.00 -
Information Technology Analyst III - - - 2.00 -
Engineering Associate - - - 1.00 -
Information Technology Analyst II - - - 1.00 -
Engineering Data Management Technician II - - - 2.00 -
Associate Engineer l - - - 1.00 -
Engineering Assistant II - - - 1.00 -
Engineering Assistant I - - - 1.00 -
Total Asset Management - - - 25.00 6.00
790 Environmental Compliance
Environmental Assessment Manager - - - - 1.00
Engineering Supervisor - - - - 2.00
Environmental Supervisor - - - - 1.00
Senior Scientist - - - - 1.00
Engineer - - - - 6.00
Regulatory Specialist - - - - 2.00
Associate Engineer III - - - - 4.00
Principal Environmental Specialist - - - - 2.50
Principal Laboratory Analyst - - - - 1.00
Senior Environmental Specialist - - - - 4.50
Administrative Assistant - - - - 2.00
Program Assistant - - - - 4.00
Office Assistant - - - - 1.00
Intern - - - - 1.00
Total Environmental Compliance - - - - 33.00
Total Engineering Department 104.50 108.50 105.50 120.50 128.50
Historical Staffing Detail
A – 28
Authorized Authorized AuthorizedApproved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
Operations & Maintenance Department
810 Operations & Maintenance Administration
Director of Operations & Maintenance 1.00 1.00 1.00 1.00 1.00
Principal Financial Analyst - - - 1.00 -
Executive Assistant 1.00 1.00 1.00 1.00 1.00
Intern - - - - 0.75
Total Operations & Maintenance Administration 2.00 2.00 2.00 3.00 2.75
410 Regional Assets & Services
Engineering Supervisor 1.00 - - - -
Senior Engineer 1.00 - - - -
Principal Financial Analyst 1.00 - - - -
Principal Staff Analyst 1.00 - - - -
Senior Engineering Associate 1.00 - - - -
Executive Assistant 1.00 - - - -
Total Regional Assets & Services 6.00 - - - -
820 Odor & Corrosion Control
Engineering Manager 1.00 - 1.00 1.00 -
Engineering Supervisor 1.00 1.00 - - -
Senior Engineer 2.00 3.00 3.00 2.00 -
Senior Scientist 0.50 1.00 - - -
Engineer - 1.00 - - -
Principal Financial Analyst - 1.00 1.00 - -
Regulatory Specialist 1.00 1.00 1.00 - -
Scientist - - 1.00 - -
Associate Engineer lll 2.00 2.00 2.00 1.00 -
Associate Engineer ll - - 1.00 - -
Senior Environmental Specialist 3.00 3.00 3.00 3.00 -
Engineering Assistant I - - - 1.00 -
Environmental Technician 1.00 1.00 1.00 1.00 -
Intern 0.50 0.50 0.50 0.50 -
Total Odor & Corrosion Control 12.00 14.50 14.50 9.50 -
830 Plant No. 1 Operations
Engineering Manager - 1.00 - - -
Operations Manager - - 1.00 1.00 1.00
Chief Plant Operator 1.00 1.00 1.00 1.00 1.00
Senior Engineer - - - 1.00 2.00
Engineer - - - 1.00 2.00
Operations Supervisor 7.00 7.00 7.00 7.00 7.00
Scientist - - - 1.00 1.00
Associate Engineer ll - - - 1.00 1.00
Senior Environmental Specialist - - - - 1.00
Lead Plant Operator 5.00 5.00 5.00 5.00 5.00
Senior Plant Operator 16.00 17.00 15.00 15.00 15.00
Administrative Assistant 0.75 0.75 0.75 0.75 0.75
Plant Operator 9.00 10.00 13.00 13.00 14.00
Control Center Technician 3.00 3.00 3.00 3.00 2.00
Total Plant No. 1 Operations 41.75 44.75 45.75 49.75 52.75
840 Plant No. 2 Operations
Chief Plant Operator 1.00 1.00 1.00 1.00 1.00
Operations Supervisor 7.00 7.00 7.00 7.00 7.00
Lead Plant Operator 5.00 5.00 5.00 5.00 5.00
Senior Plant Operator 12.00 13.00 13.00 12.00 12.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Equipment Operator 1.00 1.00 1.00 - -
Plant Operator 18.00 19.00 19.00 20.00 20.00
Control Center Technician 1.00 1.00 1.00 1.00 1.00
Total Plant No. 2 Operations 46.00 48.00 48.00 47.00 47.00
2011-12 Budget Update
A – 29
Authorized Authorized AuthorizedApproved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
850 Mechanical and Reliability Maintenance
Maintenance Manager 1.00 1.00 1.00 1.00 1.00
Senior Engineer 2.00 - - - -
Senior Maintenance Supervisor 1.00 1.00 - - -
Engineer 2.00 - - - -
Utilities Management Specialist 1.00 1.00 1.00 - -
Maintenance Supervisor 7.00 5.00 6.00 6.00 6.00
Associate Engineer III 1.00 1.00 1.00 1.00 1.00
Maintenance Specialist 7.00 - - - 4.00
Senior Public Information Specialist - - 1.00 1.00 1.00
Reliability Maintenance Technician - 1.00 2.00 2.00 2.00
CMMS Technician II 6.00 - - - -
Lead Mechanic 5.00 5.00 5.00 5.00 5.00
Lead Welder/Fabricator 1.00 1.00 - - -
Machinist 1.00 1.00 1.00 1.00 -
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Senior Mechanic 33.00 33.00 33.00 33.00 30.00
Welder/Fabricator 2.00 2.00 3.00 3.00 -
Engineering Assistant I 1.00 - - - -
Lead Facilities Worker - - - - 2.00
Facilities Worker/Builder - - - - 3.00
Facilities Worker/Painter - - - - 2.00
Mechanic 1.00 2.00 2.00 2.00 2.00
Maintenance Worker - 2.00 2.00 2.00 2.00
Office Assistant 1.00 - - - -
Total Mechanical and Reliability Maintenance 74.00 57.00 59.00 58.00 62.00
860 Instrumentation & Electrical Maintenance
Engineering Manager - - - 1.00 1.00
Process Controls Manager 1.00 1.00 1.00 - -
Engineering Supervisor 1.00 2.00 2.00 1.00 1.00
Senior Engineer 2.00 2.00 2.00 - 2.00
Principal Information Technology Analyst 2.00 2.00 2.00 - 2.00
Engineer 2.00 2.00 2.00 - 2.00
Senior Information Technology Analyst 3.00 3.00 3.00 - 3.00
Maintenance Supervisor 5.00 5.00 5.00 5.00 5.00
Information Technology Analyst III 2.00 2.00 2.00 - 2.00
Information Technology Analyst II 2.00 1.00 1.00 - 1.00
Lead Electrical Technician 4.00 4.00 4.00 4.00 4.00
Lead Instrumentation Technician 2.00 3.00 3.00 3.00 3.00
Lead Power Plant Operator 1.00 1.00 1.00 1.00 1.00
Electrical Technician II 15.00 15.00 14.00 14.00 14.00
Instrumentation Technician II 19.00 19.00 19.00 19.00 18.00
Power Plant Operator II 9.00 9.00 9.00 9.00 9.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Power Plant Operator I - - 1.00 1.00 1.00
Electrical Technician I - 1.00 1.00 1.00 1.00
Instrumentation Technician I - 2.00 1.00 1.00 1.00
Maintenance Worker - - 2.00 2.00 3.00
Total Instrumentation & Electrical Maintenance 71.00 75.00 76.00 63.00 75.00
870 Collection Facilities Operations & Maintenance (formerly division 420)
Engineering Manager 1.00 1.00 1.00 - -
Engineering Supervisor - - - 1.00 -
Maintenance Supervisor 2.00 2.00 2.00 2.00 -
Senior Engineering Associate - - 1.00 1.00 -
Lead Mechanic 4.00 4.00 5.00 5.00 -
Administrative Assistant - 1.00 1.00 - -
Senior Mechanic 9.00 9.00 9.00 9.00 -
Mechanic 7.00 7.00 8.00 8.00 -
Total Collection Facilities Operations & Maintenance 23.00 24.00 27.00 26.00 -
Historical Staffing Detail
A – 30
Authorized Authorized Authorized Approved Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12
880 Facilities Maintenance & Fleet Services (formerly division 430)
Facilities Manager 1.00 1.00 1.00 1.00 -
Maintenance Supervisor 2.00 4.00 4.00 4.00 -
Maintenance Specialist - 7.00 7.00 6.00 -
CMMS Technician II - 6.00 6.00 7.00 -
CMMS Technician I - - - 1.00 -
Lead Mechanic 1.00 1.00 1.00 1.00 -
Administrative Assistant - - - 1.00 -
Automotive/ Heavy Equipment Technician 3.00 3.00 3.00 3.00 -
Equipment Operator 2.00 2.00 2.00 2.00 -
Engineering Assistant I - 1.00 1.00 - -
Lead Facilities Worker 3.00 3.00 2.00 2.00 -
Facilities Worker/Builder 2.00 2.00 3.00 3.00 -
Facilities Worker/Painter 2.00 2.00 2.00 2.00 -
Automotive/ Heavy Equipment Assistant 1.00 1.00 1.00 1.00 -
Office Assistant - 1.00 1.00 1.00 -
Total Facilities Maintenance & Fleet Services 17.00 34.00 34.00 35.00 -
890 Environmental Laboratory and Ocean Monitoring (formerly division 630)
Environmental Lab & Ocean Monitoring Manager - - - - 1.00
Environmental Supervisor - - - - 1.00
Laboratory Section Supervisor - - - - 2.00
Senior Scientist - - - - 3.00
Scientist - - - - 1.00
Principal Environmental Specialist - - - - 3.00
Principal Laboratory Analyst - - - - 7.00
Senior Environmental Specialist - - - - 6.00
Senior Laboratory Analyst - - - - 10.00
Laboratory Analyst - - - - 3.00
Administrative Assistant - - - - 1.00
Laboratory Assistant - - - - 3.00
Intern - - - - 0.50
Total Environmental Laboratory and Ocean Monitoring - - - - 41.50
Total Operations & Maintenance Department 292.75 299.25 306.25 291.25 281.00
Grand Total, All Departments 634.00 641.00 641.00 641.00 637.00
Appropriations Limit
A - 31
Appropriations Limit Article XIIIB of the California State Constitution,
more commonly referred to as the Gann Initiative or Gann Limit, was adopted by California voters in
1980. The Gann Limit placed limits on the amount of proceeds of taxes that state and local
governmental agencies can receive and appropriate (authorize to spend) each year.
The limit is different for each agency and the limit
changes each year. The annual limit is based on the amount of tax proceeds that were authorized
to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in
each subsequent year.
Proposition 111 was passed by the State’s voters in June 1990. This legislation made changes to
the manner in which the Appropriations Limit is to be calculated:
The annual adjustment factors for inflation
and population have been changed. Instead of using the lesser of California
per capita income, or U.S. CPI, each agency may choose either the growth in
the California per capita income, or the growth in assessed valuation due to new
non-residential construction within the district. For population, instead of using
only the population growth of an agency, each agency may choose to use the
population growth within its county. These are both annual elections.
The revised annual adjustment factors will
be applied to the 1986-87 limit for most agencies and each year in between in
order to calculate the 1990-91 limit. The actual limits for the intervening years,
however, are not affected.
Expenditures for “qualified capital outlay”, which are capital assets with a value of
more than $100,000 and an expected life of 10 years or more, are excluded from
the limit.
An agency which exceeds the limit in any one year may choose to not give a tax refund if they fall below the limit in the next fiscal year. They then have two more
years to refund any remaining excess or to obtain a successful override vote.
In certain situations, proceeds of taxes may be spent on emergencies without having to reduce the limit in future years. Each agency also conducts a review of its Appropriations Limit during its annual financial audit. The law requires a governing body to annually
adopt, by resolution, an appropriations limit for the following year, along with a recorded vote regarding which of the annual adjustment factors have been selected. The Orange County Sanitation District’s appropriations limit and annual adjustment factors are adopted at the
same meeting as the budget. The adjustment factors used for 2011-12 are the weighted
average change in city population and the change in state per capita personal income.
The following table shows the annual appropriations limit for each of the last two years and the appropriations limit and the
appropriations, or proceeds from taxes, for 2011-12. The decrease in the limit is based upon
population changes ranging from 0.17% to 1.45% for major cities within the District as provided by
the State Department of Finance and a per capita personal income change of 2.51% as provided by
the State Department of Finance.
Annual Appropriation Limits: 2009-10 $80,476,000
2010-11 $79,329,0002011-12 $81,888,000
Proceeds of Taxes (Appropriations) 2011-12 $55,061,000
As a result of the July 1998 consolidation of the District, a single limit is presented in contrast to
individual limits shown in years prior to 1998. Population changes for representative cities have
continued to be used in order to ensure consistency and to eliminate significant population
growth in parts of the County outside of the District’s service area. This method results in a
lower limit than using the County-wide change.
P
S
L
F
O
A
L
D
C
S
A
A
M
D
M
S
Misce
Year of FormForm of GoAuthority ... ..................Service Are
Service Pop2010-11 As
Primary TreatmePlant NoPlant No
Secondary Treatm
Plant NoPlant No
Legend: mgd – million gallo kwh – kilowatts per
Fees and Cha
One-Time 3-B
Average Annua
Local SFR Fee
District's Avg. S
Cost to Collect
Summary of C
August 2000 R
August 2003 N
May 2007A Re
December 200
May 2008A Re
September 20
0
100
200
300
400
2010-
D
ellaneou
mation ..............vernment ..................................
........................ Cea ......................
pulation .............sessed Value ....
ent Capacity (inco. 1 ...................o. 2 ...................
TOTAL .......
ment Capacity:
o. 1 ...................o. 2 ...................
TOTAL .......
ons per day r hour
rges:
edroom Resid
al Single-Fami
e
Share of Ad Va
t, Treat, & Disp
OP Issues:
Refunding / Ne
New Money
funding
07B New Mone
funding
08B New Mon
Plant 1
95
204
11 Est. Influent
Daily Influent F
Capacity Com
us Statist
.................................... County Sa.................. Sect
California Health..........................
......... Approxim..........................
cludes standby): ....................................................
..........................
....................................................
..........................
dence Connect
ily Residence
alorem Propert
pose of 1 Millio
w Money 19$
19
9
ey 28
3
ey 2
Plant 2 T
112
20
168
Capacity - Primar
low to Total Pr
mparison (in m
tics
Gen
.................. 1948anitation Distriction 4700 et. seq
h & Safety Code..... 463 sq. miles
mately 2.5 million.... $304.3 billion
Treat
.... 204 mgd .... 168 mgd
.... 372 mgd
.... 122 mgd ...... 90 mgd
.... 212 mgd
Financ
tion
Fee
ty Tax
on Gallons
94,000,000
91,500,000
93,060,000
84,825,000
30,535,000
26,975,000
Total
07
372
ry Treatment
rimary
gd)
A - 32
neral Informa
8 t q.
e s
n n
Miles oOn-PlaOff-Pla
Operat………
………2011-1
tment Inform
2009-1
2009-1
2009-1 2009-1 2009-1
2010-11 EsPlaPla
2010-11 Est
PlaPla
cial Informati
2009-10
Actual
$4,998.00
$221.00
$204.00
1.80%
$1,876.01
May 2009A N
May 2010A N
December 2
December 2
Total Outsta
ation
of Sewers ..........ant Pump Stationant Pump Station
ting Authority ...…………… ...... …
………… .......... …12 Authorized St
mation
10 Influent BODPlant No. 1 ...Plant No. 2 ...
10 Influent SuspPlant No. 1 ...Plant No. 2 ...
10 Effluent BOD
10 Effluent Susp
10 Biosolids Pro
stimated Averageant No. 1 ...........ant No. 2 ...........
TOTAL
timated Electric
ant No. 1 ...........ant No. 2 ...........
TOTAL
ion
2010-11
Projected
$3,261.00
$244.00
$208.00
%1.80%
1,904.37$
New Money
New Money
2010B Refundi
2010C New Mo
anding COP Ba
..........................n…………… ....ns ......................
................... RW…………………
…..Statewide Wtaff (Full-Time E
D: ....................................................
ended Solids: ....................................................
D ........................
pended Solids ....
oduced & Reused
e Daily Influent....................................................
L ........................
ity Generated:
....................................................
L ........................
2011-1
Original
d Propose
0 $3,261.
0 $267.
0 $212.
%1.8
7 1,992.$
ing
oney
alance 7/1/11
.............................. ……………..........................
WQCB/NPDES P………………CA
WDR Order No. 2Equivalent) .......
..... 290 milligram..... 210 milligram
..... 328 milligram..... 292 milligram
....... 36 milligram
....... 30 milligram
d ............ 252,71
: ...................... 95.................... 112
.................... 207
......... 39,720,000........ 42,432,000
......... 82,152,000
220
lly Up
edPro
00 $
00
00
0%
89 $
194
80
154
157
1,407$
587 miles ………..2 ............ 15
Permit No. A0110604
2006-0003 ..... 637.00
ms per liter ms per liter
ms per liter ms per liter
ms per liter
ms per liter
12 wet tons
5 mgd 2 mgd
7 mgd
0 kwh 0 kwh
0 kwh
11-12
dated
posed
$3,341.00
$267.00
$212.00
1.80%
2,019.00
4,595,000
0,000,000
4,665,000
7,000,000
7,155,000